Food: UN food price index rises to highest level since 2023
Global food prices are at their highest since January 2023, according to the UN. Among other factors, wars and climate change are responsible.
The cost of global food commodities surged to the highest level in over three years in July, according to the United Nations' Food and Agriculture Organization (FAO). The FAO Food Price Index, which measures monthly changes in a basket of internationally traded foods, rose to 131.1 points in July, up from 130.3 points the previous month.
This marks the highest value since January 2023. The FAO attributes the price increase to war-related factors in Iran and Ukraine, as well as the weather phenomenon El Nino, which has led to higher costs and reduced crop yields. The grain price index increased by 3.4 percent compared to the previous month, primarily driven by a 5.8 percent jump in wheat prices.
The index for vegetable oils rose by two percent, reaching its highest level since June 2022. Higher crude oil prices due to the Middle East conflict and strong demand for biodiesel supported prices for palm and soybean oils, while rapeseed and sunflower oils saw a decrease.
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