Asian food prices hit a record high last month, as prices for some staple commodities reached their highest levels in 20 years. Recent climate instability and resulting crop damage has been blamed for the growing food inflation crisis. The United Nations Food and Agricultural Organisation warn that this trend is likely to continue over the next year.
The recent inflation has sparked concerns that the trend will spread to other sectors of the economy. In countries where millions still live below the poverty line, a rise in prices can be devastating. For many, food constitutes a sizeable proportion of their expenses and the recent spike in prices comes as a major blow to already limited budgets.
"Food price increases impact the poor hardest as food is a higher proportion of their incomes," said James Bond, Chief Operating Officer of the World Bank's political risk insurance arm. "It creates significant tension in poorer countries, exacerbates standard of living disparities and is a major source of unrest." A similar crisis in 2008 prompted riots and protests in many parts of the word, and there are fears that this could happen again.
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