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Rising Food Costs

I know this isn't as juicy an item as who has custody of Britney Spears' kids, but one would think this developing story might be getting more attention:

Soaring food prices will hurt the world's poor and increase the risks of political upheaval, a senior United Nations food agency official said on Thursday.

"We are squeezed between increasing oil prices and food price hikes," said Alexander Sarris, director, commodities and trade, of the Rome-based Food and Agriculture Organization (FAO).

He said the world's poorest people were the most vulnerable to the impact of surging grain prices, driven by falling stocks, rising production costs due to higher energy prices, adverse weather, faster economic growth and increasing biofuels demand.

Two observations:

(1) I believe we will see increasing political instability in several countries due to this food/oil "shortage"--even if that is not always labeled as the cause.

(2) Rising food costs aren't just a problem in Africa or Asia; it's affecting poor Americans, too.

Perhaps it will soon dawn on political leaders that using food to make fuel might not be the smartest of policies after all.

UPDATE: MSNBC has more.


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