Article: World food prices

World food prices surge...

In mid-June of this year, world food prices stood at a level some 62% higher than in the first quarter of 2006 - a remarkable and largely unexpected surge in prices. At the individual commodity level, even sharper increases have been seen, with cereals prices up 120%, oils and fats 140%, and dairy prices almost doubling.

Looking over a longer perspective, the recent food price boom is the biggest since that seen in the early 1970s. In real terms, food prices as a whole are still somewhat below their 1995 levels, but cereals prices are at their highest since the early 1980s. What is behind this food price boom, and can it be sustained?

A variety of interconnected ...

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