Global food prices rose to their highest level in more than three years in July as vegetable oil, cereal, and sugar prices increased, according to the UN Food and Agriculture Organization (FAO). The FAO Food Price Index averaged 131.1 points in July, up 0.6% from June, as increases in cereal, sugar, and vegetable oil prices outweighed declines in meat and dairy products. The strongest increase came from vegetable oils, with the FAO Vegetable Oil Price Index rising 2% to 195.7 points—its highest level since June 2022. The increase was driven by higher palm and soybean oil prices, supported by strong biodiesel demand in Indonesia, higher crude oil prices, and robust global import demand. Despite the increase, the FAO Food Price Index remained 18.2% below its record high reached in March 2022, although it was 1.0% higher than a year earlier.