World food price index hits highest since January 2023 on grain gains

2026-08-08

World food index rises

The world food price index for July, released on the 7th by the Food and Agriculture Organization of the United Nations (FAO), rose 0.6% from the previous month to 131.1, the highest level since January 2023. Russia and Ukraine, major wheat producers, continued exchanging attacks in the Black Sea, lifting grain markets.

Grains and vegetable oils rise

The world food price index reflects trading prices for five major commodity groups and is seen as a benchmark for food prices. Meat and dairy prices fell, while grain prices rose 3.4% partly due to adverse weather. Wheat prices climbed 5.8%, deepening concerns over supply disruptions from the Black Sea region. Vegetable oils rose 2.0% to their highest level since June 2022.

Fuel and fertilizer rise on Middle East tensions

Higher crude oil prices on heightened Middle East tensions supported palm oil and soybean oil prices, both used as feedstock for biodiesel. Since the United States and Israel launched a military operation against Iran at the end of February, fertilizer prices as well as fuel prices have surged. If the conflict drags on, there are concerns that poverty could worsen, especially in developing countries.

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