Global food prices rise as markets warn of renewed supply pressures

Global food prices climbed in August to their highest levels since 2022, according to the Food and Agriculture Organization’s index. The measure rose 1.9% from July to 133.3, with sugar prices up 11.9% and wheat trading 15% above its level a year earlier.

Agricultural markets also showed broader gains. A global agriculture index reached its highest level since early 2023, while corn futures moved toward 2026 highs after crop surveys pointed to weaker yields in parts of the U.S. Midwest. Storms and flooding added to concerns about crop losses.

Investment analysts have warned that tighter inventories, higher diesel and fertilizer costs, adverse weather and trade disruptions could intensify food inflation. JPMorgan analyst Nora Szentivanyi said a new global food emergency could emerge as soon as 2027, a prospect that could complicate central-bank decisions on interest rates.

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