In recent months, we used to see the rise in food prices. In February, in particular, the index of food prices from the Food and Agriculture Organization of the newly marked record highs. According to this index, food prices roughly tripled in less than a decade. During take-off in energy prices and budgetary constraints, consumers in many developed countries lament a significant increase in cost of living.The situation in developing countries, potentially even worse, especially in those which import a lot of food. According to the Asia Development Bank, in many economies of the region, the weight of food in the food basket is more than 40%, including Vietnam, Sri Lanka, Pakistan, India and Bangladesh. In China, food takes nearly a third of revenues. Also, for many reasons, one-half to two thirds of the acceleration of consumer inflation over the last year due to the rising cost of food - a fact that politicians in the region are paying attention. However, at the same time, higher prices of essential commodities to some extent a reflection of growing demand in the region, as it increases the middle class with more disposable income and wealth.
It is interesting that since the peak levels of space for decades, reached earlier this year, prices of some basic crops somewhat weakened. For example, the sugar has fallen off a third, while wheat, rice and palm oil fell by more than 10% of the peak. Of course, it is too early to talk about the spread, but recent trends are definitely gives you some breathing room in the rally.
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