Global food prices continue to rise. The World Bank’s food price index increased by 15% between October 2010 and January 2011 and is only 3% below its 2008 peak. The last six months have seen sharp increases in the global prices of wheat, maize, sugar and edible oils, with a relatively smaller increase in rice prices. Higher global wheat prices have fed into significant increases in local wheat prices in many countries. Higher maize, sugar, and oil prices have contributed to increase the costs of various types of food, though local maize prices have largely been stable in Sub- Saharan Africa. Local rice prices have increased in line with global prices in some large rice-consuming Asian countries. These food price rises create macro vulnerabilities, particularly for countries with a high share of food imports and limited fiscal space, as well as increases in poverty. Estimates of those who fall into, and move out of, poverty as a result of price rises since June 2010 show there is a net increase in extreme poverty of about 44 million people in low- and middle-income countries. In the immediate term, it is important to ensure that further increases in poverty are curtailed by taking measures that calm jittery markets and by scaling up safety net and nutritional programs. Investments in raising environmentally sustainable agricultural productivity, better risk-management tools, less food intensive biofuel technologies, and climate change adaptation measures are all necessary over the medium term to mitigate the impact of expected food price volatility on the most vulnerable.
http://www.worldbank.org/foodcrisis/food_price_watch_report_feb2011.html
Food Price Watch
Global food prices declined 8% between September and December 2011. Wheat, maize, and rice prices declined due to improved supply conditions, and among concerns regarding the global economy. However, global prices still remain high, with the 2011 annual food price index exceeding the 2010 annual index by 24 percent.
Prospects for decline in 2012 prices are favorable on account of increasing supplies. Yet, global prices remain high and volatile, markets tight, and oil prices uncertain. There has been strong demand from deficit areas and production losses from La Niña have already occurred. Domestic food prices also remain high and volatile, and continue to show large differences from country to country.
Declining global prices should not diminish vigilant monitoring of food price movements. Because domestic food prices have remained high, households have adopted coping strategies. These strategies follow common patterns but are not universal. Coping strategies may partially offset some of the effects of crises, yet the nutritional consequences of food crises can quickly become devastating, especially in low-income countries with weak safety nets.
http://siteresources.worldbank.org/EXTPOVERTY/Resources/336991-1311966520397/FoodPriceWatchJanuary2012.htm
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