FAO Food Price Index Hits 131.1 in July as Heatwaves and Wars Lift Crop Costs
Updated
Updated · The Guardian · Aug 7
FAO Food Price Index Hits 131.1 in July as Heatwaves and Wars Lift Crop Costs
3 articles · Updated · The Guardian · Aug 7
Summary
131.1 points in July put the FAO food price index at its highest level since January 2023, extending a rise from 130.3 in June.
Cereals, sugar and vegetable oils drove the increase as heatwaves cut yields, Black Sea export disruptions lifted wheat costs, and biofuel demand strengthened sugar and edible oils.
Wheat prices climbed 5.8% and the broader cereals index rose 3.4%; Europe’s June heatwave is estimated to have wiped out 9 million tonnes of grain crops.
Sugar jumped 5.6% on EU weather fears, El Niño risks and Brazil’s higher ethanol blend, while vegetable oils gained 2% on Indonesian biodiesel demand and firmer crude oil prices.
Meat fell 2.8% and dairy slipped 0.7%, but the broader rise is likely to feed through to store shelves, with the WFP warning El Niño could push 50 million people into acute hunger by end-2027.