UN Says Food Inflation Roller Coaster Is Here To Stay

October 11 00:00 2011

New York, October 11 (RainbowNewsLine.com) – The United Nations (UN) has made an announcement which states that the volatility in the food prices and the resultant food inflation are here to stay in the market. The United Nations made this public announcement while the issue of food inflation is wreaking havoc in many developing nations. In many places it has become a major political issue and threatens to put governments out of office.

According to the United Nations announcement, the fundamentals are pretty much against the food prices coming down in the short term. Firstly, the population of the planet is rising each day increasing the demand for food. Secondly, with the rapid pace of development and industrialization comes affluence and wastage of food by the rich and middle classes who can afford it. It is for reason that the prices rise. After all the demand is rising while supply is in shortage with wastage increasing.

The United Nations also cited the policies of countries like Russia, India, China and Argentina which ban exports as a major cause of the discrepancy in prices on the global scenario. Many times grains lie rotting in these countries but are not exported. The United Nations has warned the small import dependent African nations that they could suffer a major food crisis ahead.