Rising food prices are a powerful source of unrest in poor countries, so the entire world monitors these prices carefully. Currently they are on the rise again, leading to new concerns. Indeed, this month they rose above the level of 2008, which had sparked food riots in several countries. According to a BBC report, the immediate causes are related largely to weather.
The current spike in prices is being caused primarily by increases in the cost of sugar and, more importantly, cereals, according to the International Food Policy Research Institute.The price of wheat in particular has risen sharply. This is because wildfires last year in Russia, which accounts for 11% of global exports, resulted in an export ban, the institute's director of markets, trade and institutions, Maximo Torero, told the BBC.
The recent floods in Australia, which also accounts for 11% of global exports, has compounded the problem, he said. The price of corn has also risen, because of greater support for biofuels in the US and the increased price of oil, which makes biofuels more attractive. Droughts in Argentina, the world's second biggest exporter of corn behind the US, have also pushed the price up, Mr Torero said. "The situation is very tight. If we have more natural disasters, we could have a problem," he said.