Global Food Prices Surge: Vegetable Oils and Meat Reach Record Highs

World food commodity prices surged in July, reaching the highest level in over two years, according to the United Nations' Food and Agriculture Organization (FAO). This increase was fueled by a significant rise in vegetable oil prices and record highs in the meat market, which offset declining prices for cereals, dairy, and sugar.

The FAO Food Price Index, a key measure of global food commodity prices, rose to 130.1 points in July—marking a 1.6% increase from June. Although at its highest since February 2023, it remains 18.8% below the March 2022 peak, which followed the onset of the conflict in Ukraine. A new record in meat prices was noted, driven by heightened beef and sheep demand from China and the United States.

Conversely, cereal prices hit a five-year low, influenced by the seasonal abundance from Northern Hemisphere wheat harvests. FAO also noted a decline in dairy prices due to reduced butter and milk powder costs, while sugar prices continued a five-month descent, anticipating higher production in Brazil and India. The organization refrained from updating its cereal supply-demand estimates this month.

(With inputs from agencies.)