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The FAO Food Price Index averaged 133.3 points in August 2026, up from a revised 130.8 in July, according to the United Nations agency. This marked the second consecutive monthly rise and the highest reading since November 2022, though the index remained 16.8 percent below its all-time peak of 160.2 points in March 2022. All five commodity group indices tracked by the organization recorded increases during the month.
Sugar prices posted the largest monthly gain, jumping 11.9 percent and lifting the FAO Sugar Price Index to its highest level since June 2025, the FAO reported. The organization pointed to lower production in Brazil and weather concerns across Europe and Asia as key factors behind the surge. Cereals prices rose 2.2 percent to their highest since May 2024, supported by strong demand and uncertainty over crop prospects in major producing regions.
A Reuters report detailed how extreme heat and drought in Europe, the threat of a severe El Niño pattern and trade disruptions in the Black Sea from conflicts in Ukraine and Iran have unsettled agricultural markets. “August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations,” FAO Chief Economist Maximo Torero said in a statement. The FAO has cut its forecasts for world cereal output and ending stocks as a result of these pressures.
The FAO Vegetable Oil Price Index increased 0.6 percent to its highest level since June 2022, driven by firmer palm and soy oil quotations that offset declines in sunflower and rapeseed oils, FAO data shows. Meat prices advanced 1.0 percent while dairy prices rose 2.3 percent, with higher milk powder and cheese values contributing to the latter gain. The overall index stood 2.5 percent above its year-earlier level.
Low-income countries experienced steeper food price inflation than the global average in recent years, according to a FAO assessment. The organization has noted that the average cost of a healthy diet globally reached 4.46 purchasing power parity dollars per person per day in the latest available annual data. Food insecurity remains more prevalent in rural areas than in urban ones and affects women more than men, FAO figures indicate.
The August increase followed a similar rise in July, continuing a trend of recovering prices after earlier declines, according to FAO updates. International rice prices edged up 0.5 percent amid sustained import demand from Asian and African countries and prospects of tighter supplies. The FAO continues to track these developments through its monthly assessments of the world food situation.
