Global food prices warning from FAO: Peak expected in 2027

The upward pressure on food prices, which directly affects millions of households around the world, is gaining strength again.

Maximo Torero, Chief Economist of the Food and Agriculture Organization of the United Nations (FAO), pointed out that the increase in energy and transportation costs combined with the problems in agricultural production.

According to evaluations, price pressure is expected to become evident in the last quarter of 2026, and will continue its effect throughout the year, reaching higher levels from the first months of 2027.

WARS AND DROUGHT STRESS THE FOOD SUPPLY

Multiple risks are simultaneously affecting the global food supply.

Disruptions on trade routes caused by wars, supply risks around the Strait of Hormuz, and drought caused by El Niño increase the pressure on the production and transportation of agricultural products.

The rise in energy and logistics costs is also among the factors that push up prices in the chain extending from producer to consumer.

PRICE INCREASE IN RICE, BREAD AND SUGAR

The rise in food prices increases the pressure on low-income households, especially in Asia, West Asia and North Africa.

Retail rice price in Indonesia reached a historical peak, reaching 15 thousand 769 rupees per kilogram.

The price of large bread sold outside of state subsidy in Egypt increased from 4 Egyptian pounds to 5 pounds within a few months. Thus, the price increase reached 25 percent.

Due to the weak monsoon rainfall in India, sugar, onion and pulse prices increased by more than 10 percent within a month.

The country's government stopped purchases of sugar syrup used in ethanol production in order to protect the food supply.

FAO FOOD PRICE INDEX REACHED 136 POINTS

According to FAO data, the Global Food Price Index rose to 136 points in September.

The index increased by 1.5 percent compared to the previous month and 5.8 percent compared to the same period last year.

Thus, global food prices reached their highest level since November 2022.

If pressures from energy, logistics and agricultural production continue, the rise in food prices is expected to maintain its impact on household budgets in 2027.