Global Food Prices Rise Across the Board in August

Global food prices rose by 1.9 percent in August, with every major food category tracked by the United Nations recording an increase as sugar prices surged by nearly 12 percent.

The Food and Agriculture Organization (FAO) reported that its Food Price Index averaged 133.3 points in August 2026, increasing 2.5 points from its revised July level.

The broad-based increase pushed the index 2.5 percent above its August 2025 level, although international food prices remained 16.8 percent below the historic peak recorded in March 2022.

Sugar recorded by far the sharpest monthly increase. The FAO Sugar Price Index jumped 11.9 percent to 106.4 points, its highest level since June 2025.

FAO attributed the increase primarily to concerns about global sugar supplies for the 2026/27 season. Hot and dry conditions have affected sugarbeet prospects in the European Union, while El Niño-related conditions have raised concerns about production in parts of Asia. Lower production in Brazil's key Center-South region and India's announcement of duty-free raw sugar imports added pressure to international prices.

Cereal prices also increased significantly. The Cereal Price Index rose 2.2 percent to its highest level since May 2024, as prices increased across all major grains.

Wheat prices climbed 2.6 percent during August and stood 15 percent above their level a year earlier. FAO cited disruptions to Black Sea exports, weaker European production prospects and strong demand among the factors affecting grain markets. Maize prices increased 2.5 percent amid weather concerns in the United States and European Union.

Dairy prices increased 2.3 percent, reversing three consecutive months of declines. Higher prices for milk powders and cheese drove the increase, although the overall dairy index remained 21.7 percent below its level a year earlier.

Meat prices rose 1 percent, reflecting higher international poultry, pork and sheep meat prices, while beef prices declined.

Vegetable oils recorded the smallest monthly increase at 0.6 percent, but the index nevertheless reached its highest level since June 2022. Higher palm and soy oil prices outweighed declines in sunflower and rapeseed oils.

The August figures mean that price pressure was not concentrated in a single commodity market. All five major food categories measured by the FAO moved higher during the month, signalling a broad increase in international food commodity prices.