World on the Brink of a Food Shock — What's Happening to Prices

Global food prices in July 2026 hit a three-year high: the FAO index reached 131.1 points, up 0.6% from June. The rise is driven by heat, wars, and supply disruptions. Wheat rose 5.8%, corn 3.6%, sugar 5.6%. Meat and dairy fell. The FAO chief economist warned of a new wave of inflation.

Global food prices in July 2026 reached their highest level in over three years, according to the FAO. The Food Price Index averaged 131.1 points, up 0.6% from June and 1.0% higher than a year earlier. This is the highest reading since January 2023. The FAO's chief economist warned of a new wave of inflation, linking the rise to wars in Iran and Ukraine, as well as the El Niño climate phenomenon, which is creating a 'perfect storm' for production and supply. The main contributor to the rise was the cereal price index, which increased by 3.4% over the month, with wheat up 5.8% due to concerns about Black Sea exports and heat in producing countries. Corn rose 3.6% amid weather conditions in the US and higher energy prices. The vegetable oil index rose 2.0%, reaching its highest since June 2022, mainly due to higher palm oil prices. Sugar rose 5.6% on concerns about heat in the EU and Asia. Meanwhile, meat prices fell 2.8% after a record high in June, and dairy products declined 0.7%. Despite the rise, the index is still 18.2% below the historical peak of March 2022.