FAO: Global Food Prices Rise in July Amid Heatwaves and Energy Market Pressures

FAO: Global Food Prices Rise in July Amid Heatwaves and Energy Market Pressures
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Global food prices increased slightly in July as extreme heat, climate-related risks and geopolitical tensions affected agricultural markets, according to new data from the UN Food and Agriculture Organization (FAO).

The FAO Food Price Index showed that the cost of a basket of staple foods rose by 1 percent compared with the same period last year. Sugar recorded the largest increase, rising 5.6 percent due to concerns over hot and dry weather affecting crops in the European Union and parts of Asia influenced by El Niño conditions.

Cereal prices also increased by 3.4 percent from June, with wheat prices rising 5.8 percent amid disruptions to Black Sea exports linked to the war in Ukraine and concerns over heatwave impacts on harvests. Maize prices climbed 3.6 percent due to weather concerns in the United States and higher energy costs.

Vegetable oil prices reached their highest level since June 2022, increasing by 2 percent, driven by stronger demand and rising crude oil prices.

Meanwhile, food security experts reported improvements in Malawi following a better harvest after the severe El Niño impacts of the previous season. However, around 1.9 million people remain in acute food insecurity, with the figure expected to rise to 2.6 million during the upcoming lean season due to high prices, inflation and lower staple production.

The FAO and humanitarian agencies continue to warn that climate shocks and global instability remain major risks to food security worldwide.