UN Body Warns of “Food Price Shock”

Increasing food prices remain a political challenge for India, China and even developed nations. The benchmark index of agricultural commodities prices, provided by the Food and Agricultural Organization of the United Nations, reached a nominal record in December, “surpassing the levels of the 2007-08 food crisis,” reports Javier Blas for the Financial Times. The FAO Committee on World Food Security notes, “The rise in food prices in 2007-08, followed by the financial and economic crisis in 2009, has heightened awareness on poverty and hunger issues around the world.” The FAO index tracks wholesale cost of commodities from corn to vegetable oils. The good news is that rice prices remain stable, at about half the prices set in 2008, and recent harvests in Africa are strong. Still economists warn that nations must remain alert for weather or other disruptions that could spur shortages and price hikes. – YaleGlobal