Key Points:
a) 125.8 points
b) 128.4 points
c) 131.1 points
d) 136.5 points
Answer: c) The FAO Food Price Index averaged 131.1 points in July 2026, up from 130.3 points in June and its highest level since January 2023. Higher cereal, vegetable oil and sugar prices were the major drivers of the increase.
- FAO Food Price Index: The index averaged 131.1 points in July 2026, compared with 130.3 points in June 2026.
- Three-Year High: The July reading was the highest since January 2023, making it a more than three-year high.
- Cereal Prices: The FAO Cereal Price Index increased by 3.4% month-on-month, becoming the main contributor to the overall rise in food prices.
- Wheat Prices: International wheat prices jumped 5.8%, mainly due to concerns over Black Sea export disruptions and heat-related crop damage in major producing regions.
- Vegetable Oils: The Vegetable Oil Price Index rose 2%, reaching its highest level since June 2022, supported partly by higher crude oil prices and biodiesel demand.
- Sugar Prices: Sugar prices increased by 5.6% because of weather concerns in Europe and Asia and expectations of stronger ethanol demand in Brazil.
- Meat and Dairy: In contrast, meat prices declined 2.8% from their record June level, while dairy prices fell by 0.7%.
- Key Reasons: Adverse weather, the El Niño effect, disruptions linked to wars in Ukraine and the Gulf region, and higher energy costs contributed to concerns over global food supplies and prices. Despite the rise, the overall index remained 18.2% below its March 2022 peak.
Question:
Q1. What was the FAO Food Price Index value in July 2026?a) 125.8 points
b) 128.4 points
c) 131.1 points
d) 136.5 points
Answer: c) The FAO Food Price Index averaged 131.1 points in July 2026, up from 130.3 points in June and its highest level since January 2023. Higher cereal, vegetable oil and sugar prices were the major drivers of the increase.
