The United Nation’s Food Agency saw the highest increase in the world food prices since July 2011, the reduced harvests of big exporters like Russia, US and Canada aided in the elevation in prices of palm oil.
The International basket of food commodities has risen by 3% in the month of October says Rome based- Food and Agriculture Organisation (FAO), a third straight increase in a row.
As the huge exporters have clamped down their exports and harvests has soared the vegetable oil price index by 9.6%, an all-time high. One factor in this increase are the migrant worker shortages in Malaysia, added the FAO.
A major exporter and also consumer of pasta Italy fears that the prices would increase as it imports 40% of the wheat used in production of pasta. A 15-20% increase in the price of pasta or 24 U.S. cents is predicted by experts.
Not only has the food price rose but also the cereal price index has risen by 3.2%.
Another reason of increasing food prices is higher energy costs and supply chain prices.
