World Food Prices will Continue to More Expensive

The UN Food and Agriculture Organization (FAO), revealed that food price index for February amounted to 236 points. This figure is 2.2 percent larger than the previous month. So, most likely for March 2011 and several months ahead, the price will go up further.

Last February the index into record high in 20 years. In fact, according to the FAO, within three months in a row the index of world food prices continue to print a new record.

When FAO was first surveyed in 1990, food price index by an average of 90 points. 36 Index last month was higher than the average rate throughout 2008. In fact, when the rising food prices began to trigger unrest and a number of food export ban applied to governments of developing countries.

Rising food prices coincided with the soaring price of crude oil in the world’s major exchanges. In New York trading last week, crude oil prices have reached U.S. $ 100 per barrel.

According to FAO, food prices could continue to rise if the spike in crude oil prices can not be suppressed. “Unexpected surge in oil prices could aggravate the situation on food market,” said FAO official trade and markets, David Hallam.

Earlier, the World Bank has warned that food prices in foreign countries are now in “a dangerous level.” The high food prices is making approximately 44 million poor people around the world increasingly destitute since June 2010.

FAO noted there are at least four causes of rising food prices in seven months in a row. Four factors are weather, high demand, reduced yields, and crop land beralihfungsinya than previously to human food sources become biofuels material.

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