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Food prices rise as heatwaves, conflict hit markets

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Global food prices edged higher in July as heatwaves, El Niño conditions and geopolitical tensions continued to pressure key commodity markets.

 

The United Nations Food and Agriculture Organisation (FAO) says a basket of staple foods cost 1% more in July than a year earlier, reflecting renewed pressure on households already facing high food costs.

 

Sugar recorded one of the sharpest monthly increases, rising 5.6% in July. FAO said the increase was driven by concerns over persistent hot and dry weather affecting crop yields in the European Union, as well as El Niño-related weather conditions in key producing countries in Asia.

 

Cereal prices also rose, increasing by 3.4% from June and reversing declines seen earlier in the year. The cereal price index was 6.9% above its July 2025 level.

 

Global wheat prices increased by 5.8%, with FAO citing continued disruptions to Black Sea exports caused by Russia’s invasion of Ukraine, as well as the expected impact of recent heatwaves on crop yields in several countries.

 

Maize prices rose 3.6%, driven by concerns over hot and dry weather in parts of the United States (US) and spillover effects from firmer energy markets amid heightened geopolitical tensions.

 

Vegetable oil prices also increased, reaching the highest level since June 2022. The index rose by 2%, supported by demand from Indonesia’s biodiesel sector and higher crude oil prices.

 

Soy oil became more expensive because of strong feedstock demand from the US, although global sunflower and rapeseed oil prices declined.

 

The latest figures come as climate shocks continue to affect food systems. Heatwaves, droughts and El Niño conditions have raised concern about harvests in several regions, while conflict and energy price volatility continue to create uncertainty in global markets.

 

In Malawi, food insecurity experts say the hunger situation has improved compared with the past two years, largely because of a better harvest during the 2025/26 farming season after severe El Niño impacts in 2024/25.

 

However, about 1.9 million people in Malawi remain in crisis-level acute food insecurity, classified as Integrated Food Security Phase Classification (IPC) Phase 3.

 

The situation is expected to worsen during the October 2026 to March 2027 lean season, when 2.6 million people could face crisis-level hunger.

 

“High food prices, inflation, and below-average staple production are driving acute food insecurity, while forecasts of strong El Niño during the 2026/27 rainy season underscore the need for close monitoring,” IPC experts said.

 

–UN/ChannelAfrica–