Food price increases to have far-reaching impact

WASHINGTON. March 19. KAZINFORM Steady rises in global food prices may continue and it will have far-reaching impact, especially on the poor, two International Monetary Fund economists say; Kazinform refers to China Daily.

"Steady rises in the price of food since 2000 seem to be a trend, and not just the result of temporary factors," IMF economists Thomas Helbling and Shaun Roache say in a Finance & Development magazine article released Thursday.

The IMF's food price index - which tracks the spot prices of the 22 most internationally traded agricultural food items -- is now close to the spike previously reached in June 2008.

Hebling and Roache noted that many countries are struggling with the implications of high food prices, which exacerbates poverty, inflation, and - for countries that import food - the balance of payments.

"The implications are far reaching. Witness the recent social unrest in the Middle East and North Africa, some say in response to high bread prices," the article said.

Everyone notices when food prices go up. But the poor are hit especially hard because food makes up a much larger share of their total expenditures. They have little room to buy cheaper food items or to spend less on other purchases; Kazinform cites China Daily.

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