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In The News
   
 
 

 

In The News

 

January 10 - Food skyrockets to highest prices ever

Article: Signs Of The Last Times
 

Figures recently released by the Food 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 food costs for consumers, but some experts say that this is no longer the case, and that "food
inflation" will occur right alongside the commodity price gains. And rapid food inflation 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 weather conditions have 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.

Abdolreza Abbassian, a senior economist at the FAO, explained in a Bloomberg report that since not all commodity prices are rising, the overall indicator can be deceiving. Even so, prices across the board may increase as a result of a domino effect from the commodities that are in short supply, or even from the same conditions like
droughts and poor weather that have caused shortages and price increases in the other categories.
 

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