September 5, 2026 | 05:53 pm
TEMPO.CO, Jakarta - The UN Food and Agriculture Organization (FAO) released its food price index on Friday, September 4. The FAO Food Price Index averaged 133.3 points in August, up 1.9 percent from July and 2.5 percent from a year earlier, reaching its highest level since late 2022.
As quoted by ANTARA, this increase was broad-based, with all five commodity group indexes experiencing increases.
The FAO Sugar Price Index recorded the largest increase, jumping 11.9 percent month-on-month to its highest level since June 2025, amid growing concerns about global sugar supplies for the 2026-2027 period.
Hot and dry weather in the European Union and parts of Asia, a decline in sugar production in Brazil, and India's decision to allow duty-free imports of raw sugar also contributed to the increase.
Meanwhile, the FAO cereal price index rose 2.2 percent in August to its highest level since May 2024. Wheat prices rose 2.6 percent, driven by continued disruptions to export logistics in the Black Sea region, a decline in production prospects in parts of Europe due to hot and dry weather, and a weaker US dollar.
Corn prices rose 2.5 percent amid concerns about crop yields in parts of the United States and the European Union, strong demand from the ethanol and animal feed sectors, and disruptions to Ukrainian exports.
The vegetable oil price index rose 0.6 percent to its highest level since June 2022, marking the third consecutive monthly increase.
In addition, the meat price index increased 1.0 percent, driven by higher prices for poultry, pork, and lamb, while the dairy price index rose 2.3 percent, marking the first increase in four months.
Despite the increase in August, the FAO food price index remains 16.8 percent below the highest level recorded in March 2022, the FAO said.
Read: Will Indonesia Cut Free Nutritious Meal Budget?
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