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

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.Why this mattersFood inflation: Staple food prices remain above 2025 levels. Climate impacts: Heatwaves and El Niño continue to threaten harvests. Conflict costs: War and geopolitics drive market uncertainty. Hunger risks: Millions still hungry despite some better harvests. 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.Weathering pressureCereals 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.And although rice prices held steady last month, global wheat prices increased 5.8 per cent, amid “continued disruptions” to...