Key takeawaysThe FAO Food Price Index averaged 131.1 in July 2026, its highest reading since January 2023, up 0.6% from June and 1.0% above July 2025. What the Numbers Actually ShowThe FAO Cereal Price Index rose 3.4% month-on-month and is now 6.9% above year-ago levels. The one offset: the Meat Price Index fell 2.8% from June's record high, and dairy also softened. Torero told Reuters directly: "food prices will start increasing by the end of the year, and next year for sure they will increase more." A re-accelerating food price print forces a choice: hike into a debt-service crisis, or hold rates and let inflation run.