FAO Food Price Index hits three-year high in July
The FAO Food Price Index rose 0.6% in July to 131.1 points, marking its highest level since January 2023. This increase was primarily driven by rising prices for cereals, sugar, and vegetable oils.
Cereal prices rose 3.4%, with wheat increasing 5.8% due to supply concerns in the Black Sea and extreme heatwaves affecting production. Maize prices also climbed 3.6%, impacted by drought in the U.S. Corn Belt. Sugar prices surged 5.6% due to unfavorable weather in Europe and Asia, alongside increased ethanol demand in Brazil. Vegetable oil prices rose 2%, supported by strong biodiesel demand in Indonesia and higher crude oil costs.
In contrast, meat and dairy prices saw declines. The meat price index fell 2.8%, and the dairy index dropped 0.7%. Drivers for the overall spike include geopolitical tensions in the Black Sea and the Middle East—specifically concerns regarding the Strait of Hormuz and fertilizer supplies—as well as climate-related disruptions such as El Niño and extreme heatwaves.
Entities: Black Sea · Black Sea region · El Niño · European Union · FAO · Food and Agriculture Organization (FAO) · Indonesia · Máximo Torero · Strait of Hormuz · United Nations · United States
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 13 SOURCES] Vegetable-oil price index climbed 2% month-on-month. (FAO)
- [● 13 SOURCES] The FAO Food Price Index rose to 131.1 points in July, up 0.6% from June. (FAO)
- [● 13 SOURCES] Maize price index rose 3.6% month-on-month. (FAO)
- [● 13 SOURCES] The cereal price index increased 3.4% month-on-month; wheat prices rose 5.8% year-on-year. (FAO)
- [● 9 SOURCES] Meat price index fell 2.8% month-on-month. (FAO)
- [● 13 SOURCES] Sugar price index rose 5.6% month-on-month. (FAO)
- [● 8 SOURCES] Dairy price index declined about 0.7% month-on-month. (FAO)
- [● 13 SOURCES] The July index level is the highest since January 2023, i.e., the highest in more than three years. (FAO)