Global Food Prices Rise 1.9% in August as Sugar, Wheat and Maize Get More Expensive
By Thasmiya
Global food commodity prices climbed again in August 2026, with sugar recording the sharpest increase as weather concerns, geopolitical tensions and disruptions to major trade routes put pressure on international supplies.
The UN Food and Agriculture Organization’s Food Price Index averaged **133.3 points in August**, up **1.9% from July**and **2.5% compared with August 2025**. All five major commodity groups tracked by the index recorded increases during the month.
## **What is the FAO Food Price Index?**
The FAO Food Price Index tracks monthly changes in international prices for a basket of globally traded food commodities.
It covers five main groups: cereals, vegetable oils, dairy products, meat and sugar.
The August increase pushed the index to its highest level in several years, although it remained **16.8% below the record level reached in March 2022**.
## **Sugar prices jumped almost 12%**
Sugar recorded the biggest increase of any major food category in August.
The FAO Sugar Price Index rose **11.9% from July**, reaching its highest level since June 2025.
Hot and dry weather lowered expectations for sugar beet production in the European Union, while production concerns also emerged in important Asian markets.
Lower output in Brazil’s Center-South growing region added further pressure to global supply expectations.
India’s move to allow duty-free raw sugar imports also contributed to stronger international prices.
## **Wheat prices increased 2.6%**
International wheat prices climbed **2.6% during August** and were around **15% higher than a year earlier**.
The increase was linked partly to continuing disruption affecting Black Sea export logistics.
Hot and dry weather also weakened production prospects in parts of Europe, while currency movements added further support to international wheat quotations.
For consumers, wheat prices matter well beyond bread. Wheat is a major ingredient in flour, pasta, bakery products, cereals and numerous processed foods.
## **Maize prices also moved higher**
International maize prices increased **2.5% from July**.
Concerns about crop yields in parts of the US Corn Belt and deteriorating production prospects in the European Union contributed to the increase.
Strong demand from animal-feed and ethanol producers also supported prices, alongside disruption to Ukrainian exports and concerns surrounding agricultural input supplies.
## **Rice prices rose slightly**
International rice prices increased by a comparatively modest **0.5%**.
The increase was supported by currency movements, purchases from countries in Asia and Africa and expectations of tighter availability.
## **Dairy prices increased 2.3%**
The FAO Dairy Price Index rose **2.3% in August**, marking its first monthly increase in four months.
Milk powder and cheese prices moved higher as milk supplies tightened and hot, dry conditions affected important European producing regions.
Despite August’s increase, the dairy index remained **21.7% below its level a year earlier**.
## **Meat became more expensive too**
Global meat prices increased **1% during August**.
Higher international prices for poultry, pig and ovine meat drove the increase.
Bovine meat was the exception, with prices declining as exporters faced stronger competition while looking for alternative markets.
## **Vegetable oil prices increased 0.6%**
The FAO Vegetable Oil Price Index rose **0.6% from July**, reaching its highest level since June 2022.
Higher palm and soy oil prices outweighed falling sunflower and rapeseed oil quotations.
## **Why are global food prices rising?**
There is no single reason behind August’s increase.
Extreme heat and dry conditions are affecting crop expectations in several producing regions, while geopolitical tensions and disruptions to international trade routes are creating additional uncertainty.
Black Sea export disruptions continue to influence grain markets, while energy, transport and agricultural input costs can also affect how much it costs to produce and move food around the world.
FAO Chief Economist Maximo Torero said the August increase showed that climate shocks, geopolitical tensions and disrupted trade logistics were again adding a risk premium to food markets.
## **Could this make groceries more expensive in the UAE?**
An increase in the FAO index does **not automatically mean UAE supermarket prices will rise by the same percentage**.
The index measures international commodity prices rather than the final retail prices consumers pay.
However, the UAE imports a significant amount of its food, meaning sustained increases in international prices, freight, energy or agricultural inputs can eventually influence costs across the supply chain.
The impact on individual products will depend on factors including import contracts, exchange rates, shipping costs, retailer pricing and government food-security measures.
## **What could become more expensive?**
If international prices remain elevated, products connected to wheat, maize, sugar, dairy and vegetable oils could face greater cost pressure.
That potentially includes flour, bread, breakfast cereals, pasta, confectionery, sweetened beverages, dairy products, cooking oils and foods that use maize or wheat as ingredients.
Higher maize prices can also have an indirect effect because maize is widely used as animal feed, potentially influencing poultry, meat and dairy production costs.
This does not mean every product will immediately become more expensive, but it is an important trend to watch.
## **What happens next?**
FAO currently expects global cereal production to reach approximately **2.98 billion tonnes in 2026**, around 2% lower than the previous year but still the second-largest harvest on record.
Global wheat production is forecast at approximately **810.7 million tonnes**, while maize output is forecast at **1.309 billion tonnes**.
Global cereal stocks are projected at around **947.2 million tonnes** by the end of seasons in 2027. FAO’s projected stocks-to-use ratio of **31.6%** still points to a relatively comfortable global supply position by historical standards.
## **Why this matters**
August’s 1.9% increase does not mean consumers should expect an immediate 1.9% increase at supermarket checkouts.
What matters is whether the upward trend continues.
Sugar’s **11.9% monthly surge**, alongside higher wheat, maize, dairy, meat and vegetable-oil prices, shows that weather and geopolitical risks are putting renewed pressure on the global food system.
For UAE consumers, the next few months will be worth watching, particularly if higher international commodity prices persist long enough to filter through to imported food and retail prices.