Rome: The FAO Food Price Index, a benchmark for world food commodity prices, averaged 130.1 points in July 2025, representing a 1.6 percent increase from June. This rise was largely fueled by higher international prices of meat and vegetable oils.
According to Emirates News Agency, despite the monthly increase, the index remains 18.8 percent below its peak in March 2022, but it is still 7.6 percent higher than its level in July 2024. The index is designed to track monthly changes in the international prices of a set of globally traded food commodities. In July, the uptick in meat and vegetable oil indices outweighed declines observed in cereal, dairy, and sugar indices.
The FAO Cereal Price Index saw a decrease, averaging 106.5 points, down 0.8 percent from June. This drop was due to declining wheat and sorghum prices, which surpassed the increases in maize and barley. Fresh seasonal wheat harvests in the northern hemisphere contributed to the downward pressure, although challenging conditions for spring wheat in parts of northern America provided some price support. The FAO All Rice Price Index also fell by 1.8 percent, attributed to ample export supplies and decreased import demand.
In contrast, the FAO Vegetable Oil Price Index experienced a significant rise, averaging 166.8 points in July, marking a 7.1 percent increase from the previous month and reaching a three-year high. This surge was driven by higher quotations for palm, soy, and sunflower oils. Palm oil prices increased due to strong global demand and improved competitiveness, while soy oil was bolstered by expectations of robust biofuel sector demand in the Americas. Sunflower oil prices rose amid tightening export supplies in the Black Sea region, whereas rapeseed oil prices declined with the arrival of new crop supplies in Europe.
The FAO Meat Price Index reached a new all-time high, averaging 127.3 points, up 1.2 percent from June. The rise was propelled by higher prices for bovine and ovine meat, supported by strong import demand, particularly from China and the United States. Poultry meat prices also increased slightly, following Brazil's regaining of its avian influenza-free status, which resumed imports from key partners. However, pig meat prices declined due to ample supplies and reduced global demand, especially in the European Union.
The FAO Dairy Price Index edged down by 0.1 percent from June to 155.3 points, marking its first decline since April 2024. Prices for butter and milk powders decreased, reflecting abundant export supplies and subdued import demand, particularly from Asia. Nonetheless, international cheese prices continued to rise, driven by strong demand in Asian and Near East markets and tighter export availability in the European Union.
Finally, the FAO Sugar Price Index averaged 103.3 points, down 0.2 percent from the previous month, continuing its downward trend for the fifth consecutive month.