Higher food prices here to stay, says study

“Higher food prices and volatility in commodity markets are here to stay,” Organisation for Economic Co-operation and Development (OECD) and Food and Agriculture Organisation (FAO) said in a joint report released on Friday.

The report noted that food prices are expected to fall from the current high level in the coming months on good harvest but the prices are expected to be higher in this decade than 2001-2010.

“A good harvest in the coming months should push commodity prices down from the extreme levels seen earlier this year. However, the outlook states that over the coming decade real prices for cereals could average as much as 20 per cent higher and those for meats as much as 30 per cent higher, compared to 2001-10,” the report said.

The projections are well below the peak price level experienced in 2007-08 and again this year, it added.