Food prices edged up in July amid heatwaves and energy price hikes

Global food prices rose in July due to extreme heatwaves, geopolitical tensions, and energy price hikes, according to the UN Food and Agriculture Organization. While staples like cereals and sugar saw significant price increases, the report also noted a slight improvement in food security levels in Malawi.
Why it matters
Rising food costs driven by climate instability and conflict pose a direct threat to global food security and economic stability.
The cost of key foods edged up last month as searing heatwaves and ongoing geopolitical uncertainty impacted energy prices around the world.
According to new data published on Friday from the UN Food and Agriculture Organization ( FAO ), a basket of staple foods cost one per cent more in July than a year ago.
Commodities registering standout price surges included sugar – up 5.6 per cent in July – owing mainly to “concerns about the potential impacts of persistent hot and dry weather on crop yields in the European Union and of El Niño-related weather conditions …in key producing countries in Asia”, the FAO Food Price Index update said.
Cereals increased by 3.4 per cent from June, reversing the declines seen earlier in the year, to settle 6.9 per cent above their July 2025 level.
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