Food Prices Begin to Fall
The worldwide price of food began to drop in March after hitting an all-time high in February, United Nations Food and Agricultural Organization officials have reported. The drop follows eight months of continuously rising prices.
The Food Price Index averaged 229.8 points in March, compared to 236.8 in February. The index measures the price of food staples including grains, meat, and sugar.
However, prices remain 37% higher than they were last year.
The price of oil and sugar dropped most, followed by the price of cereals, which dropped by 2.6% but remained 60% higher than in March 2010. Meat and dairy prices remained high.
Cereal prices were affected by a global drop in production in 2010. It remains to be seen if increased production in 2011 will fully compensate for the lack the year before.
Recent global developments, including political instability in the Middle East and the tsunami in Japan, may affect prices this year, officials said.