World food prices surged in July, reaching their highest level in over three years, driven by a combination of adverse weather and escalating conflicts in the Gulf and Black Sea regions, the UN Food and Agriculture Organization (FAO) reported on Friday.The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 131.1 points in July, up from 130.3 in June and the highest since January 2023. The FAO's chief economist recently warned of a renewed period of food inflation, citing ongoing conflicts in Iran and Ukraine, alongside the El Niño weather phenomenon, as creating a "perfect storm" of increased costs and reduced crop yields.A 3.4 per cent month-on-month rise in the FAO's cereal price index drove July's trend, largely fuelled by a 5.8 per cent jump in wheat prices. Concerns over Black Sea export disruptions and heat damage to crops in key producing regions impacted wheat markets.Food prices hit a three-year high last month (Getty)The FAO's vegetable oil index rose 2 per cent, reaching its highest level since June 2022. Higher crude oil prices amid escalation in the Iran conflict and strong demand for biodiesel supported palm and soy oil prices, though rapeseed and sunflower oil declined. Sugar prices rose 5.6 per cent on weather concerns in Europe and Asia and expectations of stronger ethanol demand in Brazil.In contrast, meat prices fell 2.8 per cent from a record high in June. Poultry, pig, and bovine meat prices declined, though sheep meat prices reached a record high amid tight export supplies in Oceania. Dairy prices fell 0.7 per cent.The FAO's overall food price index for July was slightly above a previous three-year high in April. The latest reading was nonetheless 18.2 per cent below its March 2022 peak that followed Russia's full-scale invasion of Ukraine.Food prices have been on the rise for some time in the UK, with the public warned back in April that costs would rise by 10% this year as a direct consequence of the Iran war. The Food and Drink Federation (FDF), which represents 12,000 food and drink manufacturers, hiked its inflation forecast for the year from 3.2 per cent to between nine and 10 per cent.