Global food prices at three-year high as heatwaves and wars push up crop costs
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- FAO food price index rose to 131.1 in July from 130.3 in June — its highest reading since January 2023
- Cereal prices climbed 3.4% month-on-month, with global wheat up 5.8% on heatwave-damaged yields and Black Sea export disruptions from intensified Russia-Ukraine attacks
- Sugar prices jumped 5.6% on drought fears in the EU and Brazil's new rules increasing ethanol content in gasoline
- World maize prices rose 3.6% as hot, dry weather threatened yields in the US Corn Belt
- Vegetable oil prices rose 2%, with the FAO noting the Iran war has lifted input costs because roughly a third of global fertilizer production passes through the Strait of Hormuz
- Europe's June heatwave forced grain farmers to destroy an estimated 9 million tonnes of wheat, barley, maize and oats
- World Food Programme warned 50 million people are likely to be pushed into acute hunger before the end of next year by El Niño, which analysts believe may be the strongest in at least 70 years
Why it matters: Food-importing nations and low-income households face the hit first: the FAO's 3.5-year peak of 131.1 came with wheat up 5.8% and sugar up 5.6% in a single month. The WFP's projection of 50 million more people pushed into acute hunger by El Niño shows this isn't just a grocery story anymore — it's already a humanitarian one.
