Food prices are at their highest since 2022. All major categories have seen price increases.

Sugar Leads August Price Increases

Global food prices have risen again. In August, the index covering the most important food commodities in international trade rose to 133.3 points, up from 130.8 points a month earlier. This is the highest level since November 2022. Price indices for grains, vegetable oils, sugar, meat, and dairy products all rose.

Sugar recorded the sharpest increase, with prices rising by 11.9% on a monthly basis. Cereal prices rose by 2.2%, and vegetable oil prices by 0.6%. Factors contributing to this situation included heat waves and drought in Europe, uncertain weather in Asia, and disruptions in the trade of grains and fertilizers.

Global grain production is expected to be lower than projected

The forecast for global grain production in 2026 has been lowered by 3.4 million metric tons, to 2.980 billion metric tons. Compared to 2025, this would represent a 2% decline. Expectations for ending stocks are also lower, projected to reach 947.2 million metric tons at the end of the 2026/2027 season.

Despite the downward revisions, production levels remain high. However, prices rose in tandem with the deterioration of some supply forecasts, and August prices were driven by concerns over weather and trade disruptions.