Ali’s blog

Mostly quant stuff with occasional digressions

More on food prices

Posted by alifinmath on April 11, 2008

In today’s Guardian:

He (Zoellick) said the price of wheat had risen by 120% in the past year, more than doubling the cost of a loaf of bread. Rice prices were up by 75% in just two months. On average, the Bank calculates that food prices have risen by 83% in the past three years.

“In Bangladesh a 2kg bag of rice now consumes almost half of the daily income of a poor family. With little margin for survival, rising prices too often means fewer meals,” he said. Poor people in Yemen were now spending more than a quarter of their income on bread. “This is not just about meals forgone today, or about increasing social unrest, it is about lost learning potential for children and adults in the future, stunted intellectual and physical growth. Even more, we estimate that the effect of this food crisis on poverty reduction worldwide is in the order of seven lost years.”

Riots have broken out in several countries, including Mexico and India, as a response to the rapid rise in the cost of basic foodstuffs over the past 12 months.

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