Monday, June 11, 2007

Spiralling food prices

Yesterday I met W. J. with his family shopping at Sing Kwong Supermarket. Our chat inevitably touched on the recent pinch in the market- the spiralling food prices.

W. J. is in public service sector. "The living nowadays is getting more expensive-it is terribly suffocating," he grumbled. The just announced pay hikes for government servants will certainly ease the tightness to certain extent for W. J. But how about those in rural and private sectors? I am afraid they have to go on belt-tightening!

Inflationary pressure on foods is building up at an alarming rate globally. So cost of food is actually now a worldwide concern, not being confined to any particular area.

This year, on average, the food price index has gone up to a new high. This trend is likely to continue and it is going to hurt consumers at large even more.

According to analysis, three factors contribute to this burning issue. First, the global climatic change has affected crop production, thereby sending market into imbalance; second, the biofuel has caused a surge in demand for crops, and, third, there is heavy speculation by global hedge funds on commodity futures.

The present rising-price scenario is nowhere going to ease off soon. When you go shopping again, be prepared to fork out more!

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