Poor harvests over the past few years combined with low rainfall this year have resulted in rising food prices. Wheat prices have increased by up to 72.0% on last year, corn by 112%.
People forget the majority of livestock do not graze, they are fed animal feed which will often be cereal based. As the price of cereals rises so does the price of meat.
This news will not be well received by many families who are already struggling in the current economic climate. The combination of rising food prices and utilities bills will be a two pronged attack on families in debt.
Speculators are the target of many complaints as they buy and hold commodities, waiting until demands is high to release them on the market. This style of business can cause artificial shortages which affect the world population.