Foodflation

Foodflation (also known as Food price bubble) is the continuous rise in the food prices which is higher than the general inflation level. According to Reuters food prices have gone up by 11.7% in the first 11 months of 2010 whereas the general price level (inflation) has risen only by 1.9%. This indicates a serious mismatch and requires precautionary measures to avoid food crisis creating starving nations. Majority of people from developing nations spend more than 80% of their income on food and what will happen if the food prices rise at 15%-20% rate? Should n’t this issue be given more priority in the agendas of world economists?