Inflation sees food prices continuing to rise, FAO warns
Jan 6, 2011
The U.N.'s Food and Agriculture Organization announced on Wednesday that a "food price shock" may be imminent due to increasing rates of inflation.
According to the Washington Post, the benchmark food price index went up significantly last month and reached higher numbers than during the 2007-2008 food crisis, though FAO officials say the situation is not yet nearly as drastic as it was a couple of years ago.
The index reached 214.7 points last month, compared to 213.5 in June 2008. The number reflects the wholesale prices of staples such as wheat, corn, rice, dairy, sugar and meat, which officials say are likely to continue rising, according to the news source.
However, FAO officials noted that rice costs were stable, being the second most important global food commodity. Rice paddy production in Asia could exceed its outcome in 2009 by as much as 3 percent, according to FAO.org.