Global food prices peaked

Factors

6.01.11.V December food prices broke a new record, according to Le Figaro, referring to the monthly report of the Food and Agriculture Organization (FAO).

Based on the analysis of changes in prices for 55 kinds of products FAO experts have come to the conclusion that the food price index in December was 214.7 points, a rise of 4.22% — above the previous high of 213.5 points, achieved in June 2008 year.

The largest price increase was recorded in the palm oil and rapeseed oil — 7.5%, sugar — more than 6%. At about the same increase in affected cereal price index that has reached the highest level since August 2008, writes the correspondent Eric de la Chesnais.

"But the greatest concern to the FAO is the duration of this phenomenon," — says the newspaper. According to economist Abdolreza Abbassiana organization, the index increased for the sixth consecutive month, although "as opposed to 2008, oil prices are much lower, and yields were sufficient in many countries."

If the trend continues in the next two or three months, it could lead to inflation and tensions in poor countries, stresses the newspaper, and there were no signs that the growth will stop soon. Despite the price of 245 euros per tonne of wheat, there are still buyers in Asia, North Africa and the Middle East, and the situation with the supply of grain is particularly difficult.

Increase in the number of natural disasters leads to tension in the markets, there is no reason for joy and agricultural enterprises that anticipate serious difficulties because of price hikes, the newspaper said.

The foreign press

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