Food prices likely to rise more-note for EU finmins |
| Reuters - May 30, 2008 |
Global food prices could rise further in the short term and keep rising over the longer term as supplies are unlikely to match increased demand, a European Central Bank note said. The note, prepared for a meeting of European Union finance ministers next Monday and Tuesday, said other factors like protectionist trade policies, speculation and the fall of the U.S. dollar were also boosting food prices.
"In the short term upside risks persist, particularly because futures prices - used as technical assumptions - have proved to be rather unreliable predictors of global food prices," the ECB note, obtained by Reuters, showed.
People in some European Union countries have been protesting against their loss of purchasing power as the price of basic foodstuffs like bread, milk and potatoes increase. Hikes in food prices have already triggered rioting in some Asian countries.
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- Posted: 2008-05-30 08:33:42
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