Global food prices hit 4-year high

Global food prices have climbed to their highest level in nearly four years, driven by a combination of wars, disrupted trade and extreme weather, the United Nations’ Food and Agriculture Organization (FAO) said on Friday.

The FAO Food Price Index rose for a third consecutive month to 133.3 points in August, reaching its highest

level since late 2022. Prices increased across all five categories tracked by the index – cereals, vegetable oils, sugar, meat and dairy.

“Climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations,” FAO chief economist Maximo Torero said in a statement.

Sugar, cereals lead rise
Sugar prices recorded the sharpest increase, rising nearly 12 per cent from July to their highest level in a year.

Cereal prices rose by more than 2 per cent, reaching their highest level in more than two years.

Wheat and maize prices increased as military strikes disrupted shipping through the Black Sea, a key route for Russian and Ukrainian grain exports.

Fertiliser supplies have also come under pressure amid the conflict involving the United States, Israel and Iran.

The Strait of Hormuz, a major shipping route off Iran’s coast, carries a significant share of global fertiliser trade.

Higher wholesale food prices could feed through to consumer prices in the coming months, adding to pressure on household budgets.

Weather adds to supply risks
Extreme weather has compounded the supply concerns. Heatwaves across Europe this summer reduced crop yields, while the El Niño weather phenomenon threatens agricultural production in parts of Asia.

The World Food Programme, the UN agency responsible for coordinating emergency food assistance, has warned that El Niño could push another 50 million people into acute hunger by the end of next year.

The latest FAO figures underscore how conflict, disrupted shipping and increasingly volatile weather are combining to put further pressure on global food supplies.