Food skyrockets to highest prices ever
Jan 10, 2011
Figures recently released by theFood and Agriculture Organization(FAO) index of 55 food commodities indicates that worldwide food prices hit a record high in December. Though the costs of some food commodities like rice, corn and soy actually decreased, oil seeds and sugar jumped significantly due to various factors including erratic weather and droughts, according to reports.
In the past, such ups and downs on the commodity market did not immediately affect actual foodcostsfor consumers, but some experts say that this is no longer the case, and that “foodinflation” will occur right alongside the commodity price gains. And rapidfoodinflation has already taken place in India, for example, with recent reports indicating that the country experienced an overall food inflation rate of 18 percent in 2010.
Low food stocks, droughts and poor weatherconditionshave all contributed to the escalating food crisis, which has led many nations to cut off exports in order to save supplies for their own populations. And the resulting global shortages only exacerbate the problem further as importing nations scramble to source needed commodities for their own populations.