Global Food Prices Hit Highest Levels Since 2022

Global food prices rose in August to their highest levels since late 2022, according to a report from the Food and Agriculture Organization. The United Nations agency recorded a 1.9% increase in its food-commodity price index, with sugar and wheat experiencing the most significant gains.

Rising costs are driven by a combination of extreme weather and geopolitical instability. Heat waves across Europe and the threat of a powerful El Niño have increased vulnerability to inflationary shocks. Simultaneously, intensified hostilities in the Black Sea region have disrupted Ukrainian grain exports, while dimming prospects for a peace deal between the United States and Iran have further pressured global supply chains.

The agency also lowered its 2026 global grain production estimate to 2.98 billion tons. This represents the largest year-on-year decline since 2018, with specific production cuts forecast for corn and rice.