Global food prices climbed in July to their highest level since January 2023, driven by supply concerns linked to conflict and extreme weather conditions. The United Nations Food and Agriculture Organization's Food Price Index increased 0.6% month-on-month to 131.1 points in July 2026, continuing an upward trend seen over recent months [1, 2, 3, 4].
Wheat prices surged 5.8% from June amid fears of disruptions to supplies in the Black Sea region and damage from extreme heat to crops. Wheat’s rise contributed heavily to a 3.4% increase in the overall cereal price index, which was a major factor behind the broader food price gains [1, 2, 3, 4].
Vegetable oil prices also rose by 2-3.7%, reaching their highest level since June 2022, supported by increases in palm and soybean oil prices. Sugar prices jumped roughly 5.6%, driven by adverse weather affecting harvests in Europe and Asia and by higher demand for ethanol production in Brazil [1, 2, 3, 4].
Meanwhile, meat prices fell by 2.8% from their record high in June. Declines were seen in poultry, pig, and bovine meat prices, although sheep meat prices hit a new peak. Dairy prices slipped slightly by about 0.7-0.8% [2, 3, 4].
Despite July’s increases, global food prices remain roughly 18.2% below the March 2022 peak following Russia’s invasion of Ukraine, which had triggered previously extreme price volatility [2, 3, 4].
Contributing factors include intensified warfare in the Black Sea and Gulf regions, adverse weather such as droughts and heatwaves, and concerns about El Niño’s impacts. The FAO chief economist said, "The world faces another bout of food inflation as wars in Iran and Ukraine along with El Nino create a perfect storm of higher costs and lower crop yields" [1, 2, 3, 4].
The FAO will release further data next month to track how these combined stresses continue affecting global food markets.
