Food prices are up 30 per cent year-over-year.
If they rise by an equal amount this year, 193 million people will be forced into poverty, according to a new report from the Asia Development Bank. A 30 per cent rise would reduce growth by up to 0.6 per cent. If accompanied by a 30 per cent rise in oil prices, growth will fall nearly two per cent in some countries.
When food prices reached this level in 2008, many called it an aberration. Now it’s seems the rise in food prices is a long term trend, which can’t be chalked up simply to liquidity or weather.
Every country in Asia has taken measures to address the crisis, including tax cuts, export restrictions, price controls and food aid.
Commodity prices peaked in 2008 and then decline during the global recession. Now they're approaching peak
GDP growth would be crushed in 2011 with a 30% rich in prices. The damage would last into 2012 even if prices declined
A 30% increase in food prices would drive 193.2 million Asians -- nearly the population of America -- into poverty
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