Basic food items such as cereals, milk, and sugar are at near-record highs according to the UN Food and Agriculture Organisation.
The organization’s Food Price Index for February showed that prices — except for rice — are higher than they were in late 2007 and early 2008, when food riots broke out in 15 developing nations.
According to Statistics New Zealand, the price of food rose 1.8 in January, the major contributor to this increase was household basics such as fruit and vegetables.
Wellington Budgeting Advisor and Marist priest, Jeff Drane says, “The disadvantaged are particularly vulnerable whenever the price of basic food items increases. These global increases, on top of the recent GST increase make life tough for those with little means of support.”
Director of the Food and Agriculture Organisation’s liaison office for North America says the reason for rising food prices is an inability to supply sufficient to meet the human demand.
Other factors in the increased price of food include:
- rising oil prices
- increased demand for food crops to supply bio-fuels
- climate issues such as the drought in Russia
- fires and floods in Australia
However some of the price rise is also being fuelled by investor specualtion in commodities and futures markets.
With so many pressure points, advocates for the poor acknowledge tough times ahead.
Source:
Department of Statistics, New Zealand
Catholic Near East Welfare Association
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