Global food prices jump to their highest level in 4 years

Bethlehem - Ofoq News - The United Nations World Food Price Index (FAO Food Price Index) rose in September to its highest level since November 2022, recording 136 points, compared to 134 points in August. This increase is due to the increase in the prices of sugar, meat, oils, milk and grains, according to a report published by The Guardian newspaper.

The World Food Price Index is the leading international indicator. It is published monthly by the Food and Agriculture Organization of the United Nations (FAO), and tracks global trade prices for a basket of food commodities.

Data show the sugar price index jumped 11.9% in August to its highest level since June 2025. The increase was driven by a cut in global supply forecasts in 2026/27, partly due to concerns about El Niño.

Decreased sugar production in the sugar-growing region of central and southern Brazil contributed to the change in supply forecasts. In addition, India's announcement to exempt raw sugar imports from customs duties contributed to the rise in global sugar prices. In August 2026, India agreed to exempt one million tons of raw sugar from customs duties until October 31, 2026.

El Niño is a periodic global climate phenomenon in which the waters of the tropical Pacific Ocean warm as a result of weakening winds. The year 2026 saw an exceptionally strong “super El Niño”, with sea water temperatures rising by more than 2 degrees Celsius. The World Meteorological Organization has warned of severe droughts, fires and floods in various regions of the world due to severe heat waves.

The global cereal price index reached 116.3 points in August – an increase of 2.2% compared to the previous month and its highest level since May 2024. This was attributed to “strong demand, concerns about weather and crops in key regions, and uncertainty about black water export flows.”

Wheat prices rose amid continuing disruptions in export logistics from the Black Sea and expectations of lower production in parts of Europe due to hotter and drier weather than usual.

The FAO International Vegetable Oil Price Index rose in August - for the third time in a row - to 196.9 points - an increase of 0.6% from the previous month and its highest level since June 2022. Palm oil and soybean oil prices pushed the index higher, while sunflower and rapeseed oil prices fell slightly, tempering some of the increase.

The global meat price index rose 0.1% in August due to higher prices for chicken, pork and lamb.