First petrol, then energy – now food prices skyrocket

Growing populations, rising affluence in Brazil, Russia, India and China, and crop failures caused by extreme weather have pushed up the prices of wheat, sugar, cotton and many other household staples.

So far, bread, breakfast cereals and clothing have become more expensive – but the full effects of the cost of raw materials have not yet filtered through to shops, meaning they are likely to rise sharply in the coming months. Wheat, for instance, is up by 69 per cent this year, while many other commodities have risen sharply on an annual basis. Coffee is up by 48 per cent, potatoes by 47 per cent, cocoa powder by 32 per cent and sugar by 23 per cent, according to the commodities and raw-materials company Mintec.

Aside from cotton – which has doubled in price after decades in the doldrums – the biggest single rise has been in orange juice, which has jumped by 70 per cent, sending the supermarket price of a litre of Princes up by 54 per cent from 92p to £1.42.

via The Independent.