FAO Index: global food prices rose 6.9% year-on-year in August

According to the Food and Agriculture Organization of the United Nations (FAO), in August 2025 the global Food Price Index rose to 130.1 points — up 0.1 points from July and 6.9% compared with August last year, reaching a two-and-a-half-year high.

The FAO notes mixed dynamics across sectors: the cereal index fell 0.8% monthly to 105.6 points (−4.1% y/y) due to abundant global supply and weak imports for certain items. Corn prices rose due to concerns about harvests in the EU and increased demand for feed and ethanol in the US. The vegetable oils index rose 1.4% to 169.1 points mainly due to higher prices of palm, sunflower, and rapeseed oils.

The meat price index increased 0.6% month-on-month and 4.9% year-on-year, reaching a record 128 points — driven by rising beef and lamb prices supported by strong import demand, particularly from China. The dairy price index fell 1.3% monthly and 16.2% y/y to 152.6 points. Sugar prices rose 0.2% monthly but fell 9% y/y (103.6 points).

For residents of Northern Cyprus, this means upward pressure on prices of meat products and vegetable oils in stores and restaurants, while falling cereal prices may not immediately affect bread and grain product costs due to local stocks and logistics. Budget planning, monitoring supermarket promotions, and stocking up on basic products when possible are recommended.