Global Grocery Bill: Food Prices at All Time High

January 5th, 2011 - 11:19 pm ICT by Angela Kaye Mason  

Jan 5 (THAINDIAN NEWS) According to a report from the United Nations Food and Agriculture Organization, otherwise called the FAO, the world’s grocery bill reached an all time high last year. With the rise in the prices of sugar, oil, and cereal, the Food Price Index of the FAO rose to a record high last month in December, which was even higher than in June of 2008, when a shortage of food lead some countries into a crisis state.

The monthly change for the cost of food such as cereal, oil seeds, sugar, meat, and dairy is measured by the FAO index. In November, that number was 373.4 points, but by December it had risen to 398.4 points. The cereal price index of items like wheat, corn, and rice has risen to the highest ever recorded since August of 2008. The sugar index jumped to an all time high as well.

According to Abdolreza Abbassian, economist for the FAO in an interview with Reuters, “We are concerned, the real reason for concern is the unpredictability. There is still room for prices to go up much higher, if for example the dry conditions in Argentina tend to become a drought, and if we start having problems with winterkill in the northern hemisphere for the wheat crops.”

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