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Global food prices rose again in August amid growing risks from climate change, geopolitical tensions and disruptions to supply chains, according to the United Nations Food and Agriculture Organization (FAO).
The FAO Food Price Index increased by 2.5 points from July to 133.3 points in August, with prices of cereals, vegetable oils, sugar, meat and dairy products all recording increases.
According to a Reuters report citing the FAO, extreme heat and drought in Europe, the potential impact of El Niño in Asia, and conflicts and trade disruptions involving Ukraine and Iran are creating fresh uncertainty over agricultural supplies.
The cereal price index rose 2.2% in August, reaching its highest level since May 2024.
Vegetable oil prices increased 0.6%, their highest level since June 2022, while the sugar price index jumped 11.9%, reaching its highest level since June 2025.
FAO Chief Economist Maximo Torero described the price increases as a warning that risks are returning to global food markets.
The agency has also lowered its forecast for global cereal production in 2026 by 3.4 million metric tonnes to 2.980 billion tonnes.
Under the revised projection, global cereal output could fall by around 2% from 2025, potentially marking the largest annual decline since 2018.
The FAO said disruptions to grain supplies caused by the Russia-Ukraine war, combined with pressure on fertiliser supplies linked to the conflict surrounding Iran, are adding to risks in global food markets.
Meanwhile, higher energy prices driven by conflict in the Middle East are raising the costs of food production, storage and transportation. Uncertainty surrounding the Strait of Hormuz—one of the world’s key energy shipping routes—could further intensify the pressure.
A prolonged disruption in the strait could deepen energy shortages and push up food prices, particularly in countries heavily dependent on food imports.
Analysts warn that unless conflicts ease quickly, continued pressure on energy and supply chains could further undermine global food security and fuel inflation in vulnerable economies.