World food prices rose again in August, according to the Food and Agriculture Organization of the United Nations. The agency's benchmark index averaged 133.3 points, up 1.9 percent from July and 2.5 percent higher than a year earlier. Hot weather, conflict in the Middle East and disrupted trade routes in the Black Sea all pushed quotations upward. FAO's chief economist warned that climate shocks and geopolitical tensions are tightening supply expectations across global markets.
Sugar recorded the sharpest monthly increase, jumping 11.9 percent on expectations of weaker harvests in Europe, Asia and Brazil. Wheat prices climbed 2.6 percent and now stand 15 percent above their level of last year. Dairy, meat and vegetable oils also became more expensive. Meanwhile, FAO expects global cereal production to reach 2,980 million tonnes this year, the second-largest harvest on record despite a two percent decline.