Global food prices experienced a slight rise in June 2025, with the FAO Food Price Index increasing by 0.5 percent from May to reach 128.0 points. According to the United Nations’ Food and Agriculture Organization (FAO), the uptick was primarily driven by higher international prices of dairy, meat, and vegetable oils, even as prices for cereals and sugar declined. The index now stands 5.8 percent higher than the same period last year, though it remains well below the record peak seen in March 2022.
Cereal prices dropped by 1.5 percent in June, largely due to a sharp fall in maize prices as bumper harvests from Argentina and Brazil boosted global supply. Prices of sorghum and barley also declined. However, wheat prices rose amid concerns over hot and dry weather in parts of the European Union, Russia, and the United States. International rice prices slipped slightly, particularly for Indica varieties, due to softer global demand.
Vegetable oils recorded the steepest price increase last month, with the index rising by 2.3 percent. Palm oil prices surged nearly 5 percent, driven by strong international demand. Soy oil prices also climbed, bolstered by expectations of higher biofuel demand in Brazil and the US, as well as firm soybean prices in South America. Rapeseed oil prices increased amid tight global supplies, while sunflower oil prices eased slightly thanks to improved production prospects in the Black Sea region.
Meat prices reached a new all-time high in June, rising by 2.1 percent. Prices for bovine, pig, and ovine meats all increased, while poultry meat prices continued to fall. The dairy index rose by 0.5 percent, with butter prices hitting a record high due to limited supplies in Oceania and the EU, along with strong demand from Asia. Cheese prices also increased for the third month in a row, while prices for skim and whole milk powders declined due to subdued demand and ample global supplies.
Meanwhile, sugar prices saw a significant 5.2 percent decline, marking the fourth straight monthly drop and hitting the lowest level since April 2021. The decline is attributed to improved production prospects in Brazil, India, and Thailand, supported by favourable weather and expanded crop areas.
Adding to the global food outlook, FAO projected a record-high global cereal production in 2025, reaching 2,925 million tonnes, up 2.3 percent from last year. The increase is driven by improved outlooks for wheat, maize, and rice, particularly in India, Brazil, and Vietnam. Despite ongoing dry weather risks in parts of the EU and Ukraine, global grain supplies are expected to remain stable, with rising stocks and rice exports projected to reach a new record.
