The FAO Food Price Index rose by 1.6 percent in July to an average of 130.1 points, driven primarily by surging global prices of meat and vegetable oils, according to the Food and Agriculture Organization (FAO). Despite the monthly increase, the index remains 18.8 percent below its record high in March 2022, but 7.6 percent higher than in July 2024.
The rise signals continued volatility in global food markets, with the FAO Vegetable Oil Price Index climbing 7.1 percent to a three-year high, boosted by stronger demand for palm, soy, and sunflower oils. Meanwhile, the FAO Meat Price Index hit an all-time high, up 1.2 percent, led by stronger demand from China and the U.S.
Other commodity groups saw declines. The Cereal Price Index fell 0.8 percent, pressured by seasonal wheat harvests, while dairy and sugar prices dipped slightly amid ample export supplies and weakening global demand.
The index, a key barometer of international food commodity prices, reflects ongoing imbalances in supply and demand, with implications for global food security and inflation trends.
