Global Food Prices Jump to Highest Level in 4 Years

Bethlehem - Afaq News - The United Nations Food and Agriculture Organization's global 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 attributed to rising prices of sugar, meat, oils, milk, and grains, according to a report published by The Guardian.

The global 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 shows that the sugar price index jumped by 11.9% in August to its highest level since June 2025. The increase was due to lowered global supply forecasts for 2026/2027, partly due to concerns about the El Niño phenomenon.

The decline in sugar production in the sugar-growing regions of central and southern Brazil contributed to the change in supply forecasts. Additionally, India's announcement of a tariff exemption on raw sugar imports contributed to the rise in global sugar prices. India had agreed in August 2026 to exempt one million tons of raw sugar from tariffs until October 31, 2026.

The El Niño phenomenon is a periodic global climatic event, where the temperature of the tropical Pacific Ocean rises due to weakened winds. The year 2026 witnessed an exceptionally strong 'super El Niño' phenomenon, with sea temperatures rising by more than two degrees Celsius. The World Meteorological Organization has warned of severe droughts, fires, and floods in various parts of the world due to extreme heat waves.

The global grain price index reached 116.3 points in August - an increase of 2.2% compared to the previous month and the highest level since May 2024. This is attributed to "strong demand, concerns about weather and crops in key areas, and uncertainty regarding the flow of black sea exports."

Wheat prices have risen amid ongoing disruptions in export logistics from the Black Sea and forecasts of reduced production in parts of Europe due to hotter and drier-than-usual weather.

The FAO's international vegetable oil price index rose in August - for the third consecutive time - to 196.9 points - an increase of 0.6% from the previous month and the highest level since June 2022. Palm oil and soybean oil prices drove the index up, while sunflower oil and rapeseed oil prices decreased slightly, which mitigated some of the increase.

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