That's what the head of the UN humanitarian agency said recently. Since last year, there has been a 40% rise in the average price of food, due partly to rising food prices and natural disasters. There have been riots and demonstrations over food prices in Egypt, Indonesia, Ukraine, and all across sub-Saharan Africa. Can we perhaps expect some serious instability in the governments of badly-struck areas? This is particularly problematic for sub-Saharan Africa, whose political situation has markedly improved over the last few years.
Modern food production is heavily dependent upon oil-products (fuel and fertilizers). As oil continues its never-ending rise, food prices will be going along for the ride.
Oil is trading at record levels, ergo, it is reasonable to expect that food prices are also equally high right now.
And virtually no one is predicting any reduction in oil prices - ever. Ergo, food prices will continue to rise along with oil.
