The world faces an inflationary time bomb as shortages of food threaten to push prices to fresh all-time highs.
A variety of freakish weather conditions across the world has sent the price of staples including wheat, pork, rice, orange juice, coffee, cocoa and tea to fresh highs in recent weeks. Yesterday's decision by the Russian government to ban the export of wheat to protect home consumers saw grain prices jump 8 per cent on the day, on what was already a two-year high. Meanwhile, the burgeoning demand for foodstuffs and raw material growth in the resurgent economies of China and India has also driven oil, copper and other industrial commodities higher.
World wheat prices are up 92 per cent since early June. Worse could follow: the Russian weather has also threatened the next sowing season, and has harmed other crops such as sugar beet, potatoes and corn.
Monday, August 9, 2010
Food Riots Coming?
Posted by Nick