A World Bank report warns that rapid inflation in food prices is driving up the numbers of impoverished men, women and children around the globe.
Food prices, according to the bank, rose 15 percent between October 2010 and January. On a year-over-year basis, prices were up 29 percent for the period. Current food prices are only three percent below the highest point on the index reached in 2008. Wheat prices doubled between June and January, while maize was up 73 percent. Sugar and edible oils have all seen major spikes, while rice has risen more slowly.
The World Bank estimates that 44 million people have fallen into poverty since June. Impoverished consumers spend more than half of their income on food, according to the bank. Those defined as living in "extreme poverty" exist on less than $1.25 a day.
"Global food prices are rising to dangerous levels and threaten tens of millions of poor people," Robert Zoellick, president of the World Bank, said on a conference call. "If we don't get a relief on the weather side, then I foresee conditions getting worse, and mistaken policy actions such as exports bans or other tax or price controls will exacerbate the problems."
Closer to home, food prices are also rising but not nearly at the rate seen in developing country markets. While gas prices rose 8.5 percent in December, food was up only 0.1 percent, according to the Bureau of Labor Statistics. Many believe, however, that while food prices are currently lagging fuel, that gap will eventually close. Even so, higher gas and food prices have always hurt the poorest in society disproportionately.
Developments in Washington, D.C. may also adversely affect the poor's access to food.
Congressional proposals to cut supplemental nutrition programs such as the WIC (Women, Infants and Children) by $758 million could ultimately force people off the program, although the actual effect has yet to be determined. Food manufacturers and retailers serving WIC consumers could also be adversely affected.