Food Prices Reach Record High - National Inflation Association

Food Prices Reach Record High - National Inflation Association
January 5, 2011

According to the Food , Agriculture Organization (FAO), their index 0f 0f 55 food commodities has surged to a new all time high 0f 214.7 points, surpassing its previous highest record from June 0f 2008 0f 213.5 points.

In other words, food prices (nominally) are at a record high, despite the fact that the BLS claims that current year-over-year food price inflation is only 1.5%. According to the FAO, “It will be foolish to assume this is the peak.”



NIA is projecting that the U.S. will see double-digit food price inflation in the first half 0f 2011. In 2010, Americans were lucky with most 0f our food price inflation being exported to China. With riots breaking out in China over food prices, food riots in the U.S. could be next.

During the past week, sugar futures reached a new 30-year high, coffee futures reached a new 13-year high, orange juice futures reached a new 3-year high, corn futures reached a new 29-month high, soybean futures reached a new 27-month high, , palm oil futures reached a new 33-month high. NIA believes that Americans will fully feel recent agricultural commodity price increases at their local supermarket within the next six months. NIA predicts that food inflation will become America’s top crisis 0f 2011.

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By: The eFoods Global Business Network