Food Prices

How do wars, tariff disputes and currency fluctuations affect the international trade in agricultural products? Poor countries suffer disproportionately from inflation risks and food insecurity.

Consumers around the world have seen food prices going up ever since the outbreak of the COVID-19 pandemic. While food price inflation has slowed more recently, concerns over the rising cost of living have not gone away. Why is this and should we expect the cost of our daily meals to go up even more in the foreseeable future?

Global food price shocks

Reductions in cereal and vegetable oil prices contributed to a slight decline in the FAO Food Price Index in September. The Index remains nearly 20 percent below its March 2022 peak but rose 3.4 percent from September 2024.

Global staple food prices remained largely stable in August, according to the latest FAO Food Price Index. The Index was nearly 7 percent higher than its August 2024 level but still well below the record high seen in March 2022.

The FAO Food Price Index rose by 1.6 percent in July based on increasing meat and vegetable oil prices. The Index remains 7.6 percent higher than its 2024 level but nearly 19 percent below its March 2022 peak.

With the Sustainable Development Goal (SDG) deadline of 2030 fast approaching, the clock is ticking for the world to meet its goal of eradicating hunger and food insecurity. Some progress was made toward this milestone in 2024; however, hunger levels remain above their pre-pandemic levels, according to the 2025 State of Food Security and Nutrition in the World report.