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Recommend “BBC” - Food prices hit new record highs, says UN food agency (Email)

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3 March 2011

http://www.bbc.co.uk/news/business-12638085

Global food prices have hit record highs, and could rise even further, according to the United Nations.

The UN's Food Price Index rose 2.2% in February to the highest level since the UN's Food and Agriculture Organization (FAO) began monitoring prices in 1990.

It also warned that spikes in the oil price could make the "already precarious" situation in the food market even worse.

Apart from sugar, the FAO said all commodity groups had risen in price.

Oil prices recently hit two-and-a-half year highs due to political unrest in North Africa and the Middle East.

The FAO said the volatility in the oil markets was adding to an already difficult and uncertain situation.

"This adds even more uncertainty concerning the price outlook just as plantings for crops in some of the major growing regions are about to start," said the FAO's David Hallam.

The International Monetary Fund (IMF) said it was "extremely concerned" about the situation.


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