DOHA: Food prices remain high worldwide and could escalate further this year, QNB Group warned yesterday.
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Food prices are of particular concern to the poorest third of the world population who spend over half of their income on food alone and to several countries in this region that are highly dependent on imports.
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According to QNB Group analysts, the trend could impact inflation in the GCC countries as well.
Food prices had eased slightly in the second half of 2012 due to welcome harvests in the southern hemisphere, particularly soy and corn in Brazil.
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This, together with a drawdown of stocks has partly offset the impact of lower than expected supply from the drought-stricken US.
The QNB Group said in a statement yesterday that existing concerns include record temperatures in Australia this month, signs that the US drought may persist for another year and low levels of food stocks.
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If climatic problems develop in any other key producing areas then prices could reach new record levels.
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