Food Prices Continue to Rise

Newly released data by FAO show that food prices continued to rise, up 3.4% from the last month of 2010. This is yet another record high. Here is a plot based on the FAO data (click to enlarge):

fpi-ts-1990-2011

An article in today’s New York Times attributes much of the rise in price to uncertainty over coming harvests. It also notes the four main factors that contribute to increased price: weather, higher demand (from larger population size and greater demand for meat and dairy), smaller yields, and the diversion of food crops to biofuels.

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