Wheat sends food prices up
FAO Food Price Index climbs five percent in August
1 September 2010, Rome - Surging wheat prices drove international food prices up five percent last month in the biggest month-on-month increase since November 2009, FAO announced.
The FAO Food Price Index (FFPI) averaged 176 points in August, up nearly nine points from July, FAO said in its latest update on the global cereals supply and demand situation. The increase - five percent - brought the Index up to its highest level since September 2008, but still 38 percent down from its peak in June 2008.
The FFPI surge mainly reflected the sudden sharp rise in international wheat prices following drought in the Russian Federation and the country's subsequent restrictions on wheat sales. But other drivers included higher sugar and oilseed prices.
For full press release, please see: http://www.fao.org/news/story/en/item/45006/icode/