Already Record Food Prices Rise By 3.4% In January Submitted by Tyler Durden on 02/03/2011 09:11 -0500
When last month we highlighted the FAO's periodic report which noted that food prices had surged to a fresh all time high, Zero Hedge first predicted that food riots were imminent. Fast forward 6 rioting countries and 2 revolutions later, to today when we get an update from the UN's Food and Agriculture Organization, where we read that, not surprisingly "the FAO Food Price Index (FFPI) rose for the seventh consecutive month, averaging 231 points in January 2011, up 3.4 percent from December 2010 and the highest (in both real and nominal terms) since the index has been backtracked in 1990." And while it is painfully obvious to anyone who shops for groceries, but not to Genocide Ben, nothing is ever obvious to him, here is Reuters' take on the numbers: "Up for the seventh month in a row, the closely watched FAO Food Price Index touched its highest since records began in 1990, in nominal terms, and topped the high of 224.1 in June 2008, during the food crisis of 2007/08." Yes, oil may not be at its all time highs from the summer of 2008, but food has already surpassed it.
A graphic presentation of what guarantees many more revolutions, courtesy of Gen Ben:
Surging food prices have come back into the spotlight after they helped fueled protests that toppled Tunisia's president in January. Food inflation has also been among the root causes of protests in Egypt and Jordan, raising speculation other nations in the region would secure grain stocks to reassure their populations.
Severe drought in the Black Sea last year, heavy rains in Australia and dry weather in Argentina and anticipation of a spike in demand after unrest in north Africa and the Middle East has helped power grain prices to multi-year highs.
The FAO's Sugar Price Index soared to a record high of 420.2 points from 398.4 points in December.
Its Cereals Price Index, which includes prices of main food staples such as wheat, rice and corn, rose to an average of 244.8 points in January, the highest level since July 2008 but below its peak in April 2008, the data showed.
The Oils Price Index rose to 277.7 points in January from 263.0 points in December and came close to the June 2008 record level.
On the other hand, the anger which will sooner or later be focused on none other than Ben Bernanke for starting a wave of global revolutions, may be diluted a little bit after JC Trichet said during a media press conference earlier that "inflation is contained." It appears he is also 100% confident that years of pent up hunger and anger can be eliminated with a 15 minute waving of a magic wand.
As usual, keep an eye on cotton, wheat and rice: with central bankers now stuck firmly in denial, these are the only indicators that matter.
_________________ This year's hallway bounty: tampon dipped in ketchup, mouthguard, one sock, severed teddy bear head, pregnancy test, gym bag containing unwashed gym clothes and a half-eaten sandwich
Joined: Sun Oct 24, 2004 3:38 pm Posts: 20059 Gender: Male
Well, I thought bi meant that ethanol isn't really that responsible for the rise in global food prices. i'm not sure why it worked (according to mcparadigm), though.
_________________ stop light plays its part, so I would say you've got a part
Well, I thought bi meant that ethanol isn't really that responsible for the rise in global food prices. i'm not sure why it worked (according to mcparadigm), though.
Ethanol is not really to blame for the rise in world food prices.
Joined: Thu Dec 16, 2004 1:54 am Posts: 7189 Location: CA
broken iris wrote:
dkfan9 wrote:
Well, I thought bi meant that ethanol isn't really that responsible for the rise in global food prices. i'm not sure why it worked (according to mcparadigm), though.
Ethanol is not really to blame for the rise in world food prices.
Its not a major factor but surely it contributes. Not as much as Russia and others cutting off exports tho.
Joined: Sun Oct 24, 2004 3:38 pm Posts: 20059 Gender: Male
broken iris wrote:
dkfan9 wrote:
Well, I thought bi meant that ethanol isn't really that responsible for the rise in global food prices. i'm not sure why it worked (according to mcparadigm), though.
Ethanol is not really to blame for the rise in world food prices.
Yeah, I get that (although, as SS said, it contributes something). I didn't get mcparadigm's reply though.
_________________ stop light plays its part, so I would say you've got a part
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Pipe down Iowa.
