FAO reports food prices drop, but outlook remains shaky
Nov 3, 2011
As the global economy continues to remain on shaky grounds, many individuals have had a hard time affording the necessities. Although a recent report from the United Nations Food and Agriculture Organization (FAO) revealed that food prices had dropped 4 percentage points in October, it still remains high in comparison to the year before.
According to the FAO, food prices on a global level dropped to an 11-month low during October. Overall, the organization's Food Price Index averaged 216 points last month, which was a 4 percent drop from September.
"The drop was triggered by sharp declines in international prices of cereals, oils, sugar and dairy products," said the report. "Meat prices declined the least."
Still, the organization stipulates that prices still remain volatile for the most part, as exchange rates and other uncertainties are playing into the fluctuating prices.
According to the FAO, there were more than 925 million hungry people in the world last year, with more than half of that statistic residing in Asia and the Pacific region. Although the recent flood in Thailand has not affected food supply because of large reserves, there still may be trouble ahead.