Global Food Prices Rise Again Amid Supply Concerns

In August 2026, global food prices rose for the second consecutive month, as reported by the Food and Agriculture Organisation of the United Nations (FAO). The FAO Food Price Index averaged 133.3 points, which is an increase of 2.5 points, or 1.9 percent, from the revised level in July and 3.3 points, or 2.5 percent, higher than the same month the previous year.

Despite this rise, the index remains 26.9 points, or 16.8 percent, below its peak reached in March 2022. Maximo Torero, the FAO chief economist, stated that the increase in global food prices signals a warning that the risk premium is returning to food markets.

He attributed this rise to climate shocks, geopolitical tensions, and disrupted trade logistics, which are tightening supply expectations. All five commodity groups in the index recorded gains, with the FAO Cereal Price Index rising 2.2 percent to 116.3 points, its highest level since May 2024.