Global food prices went up in July, reaching their highest level in three years, according to a United Nations agency.
Global food prices went up in July, reaching their highest level in three years, according to a UN agency. Geopolitical tensions in the Middle East and Ukraine, extreme heat waves, and rising energy prices have driven up the cost of cereals, vegetable oils, and sugar, despite falling prices for meat and dairy products.
After several months of fluctuations, agricultural markets are on the rise again. The United Nations Food and Agriculture Organization (FAO) food price index stood at 131.1 points in July 2026, up 0.6% from June and 1% year-on-year.
This index, which tracks changes in international prices for a basket of food products traded on global markets, has returned to a level not seen in three years.The rise mainly comes from cereals, whose prices went up by 3.4% in a month. Wheat prices jumped 5.8%. Concerns over exports from the Black Sea, combined with heatwaves hitting several major farming regions, are fueling market tensions.
Cereals, sugar, and oils are pushing prices up
Corn is following the same trend (+3.6%), driven by drought in parts of the United States and the surge in energy prices amid a tense geopolitical situation.
Going against the trend, the FAO index for all types of rice prices has remained generally stable.Beyond cereals, other agricultural markets also contributed to the rise of the index, even though their trends remain more mixed. Sugar saw one of the biggest increases of the month (+5.6%), reversing the drop observed in June.
Markets were supported by concerns about “the persistence of hot and dry weather affecting crop yields in the European Union, as well as the effects of the El Niño phenomenon on harvests in major Asian producing countries.”
Vegetable oils also went up (+2%), reaching their highest level since June 2022. Palm oil prices were boosted by strong demand from Indonesia’s biodiesel sector and rising crude oil prices. Soybean oil prices also rose, supported by robust demand in the U.S. and a recovery in global imports.
A worker picks up eggs at a poultry farm outside Cairo, Egypt.
Meat and dairy are slowing down
On the other hand, global prices for sunflower and rapeseed oil have dropped.
While plant-based products generally supported the rise of the index, the trend reversed in the meat market. It fell by 2.8% from its record level in June, marking its first monthly decline of the year.International poultry prices have fallen, mainly due to lower prices in Brazil amid abundant export supply, while pork prices slipped because of ample supply in the European Union and moderate global demand.
The decline also spread to dairy products, with their index dropping 0.7% in July, driven by falling prices for whole milk powder, skimmed milk powder, and butter.
“Internationally traded cheese prices have risen for the first time in a year, as the seasonal drop in milk supply in the European Union more than offset the ongoing price decline in Oceania, as well as the pressure from abundant exports and increased competition from the United States,” detailed the FAO.
