China News Service, June 7-According to Singapore’s Lianhe Zaobao, world food prices are rising rapidly.

The food price index for May released by the United Nations a few days ago rose 40% from a year ago, reaching the highest level in about 10 years since September 2011.

　　According to data released by the Food and Agriculture Organization of the United Nations (FAO) on June 3, the average food price index in May increased by 5.8 percentage points from April, reaching 127.1.

The index has risen for 12 consecutive months and is rising at the fastest rate in the past 10 years.

　　Specifically, the grain index rose to 133.1, an increase of 7.5 percentage points.

The prices of corn, soybeans and wheat have risen in tandem.

　　There is a growing view that in the United States and South America, the main grain producing areas, the harvest will be further reduced due to unstable weather such as dryness and rainfall.

　　Vegetable oil used in processed foods rose by 12.7 percentage points to 174.7, a significant increase.

Take palm oil, the world's most consumed palm oil, as an example. The production growth in Southeast Asia, the main producing area, has been weak.

The expected increase in demand for fuels such as biodiesel also constitutes a bullish factor.

The prices of sugar and meat have also continued to rise.

　　In addition, there are other reasons for rising food prices.

　　Due to travel restrictions caused by the new crown epidemic, there is a shortage of foreign workers engaged in field work in many countries.

At present, with the popularization of vaccines, the demand for food is recovering faster than expected, production cannot keep up with demand, and prices are likely to rise.

　　In addition, there is also a side where global monetary easing has led to investment funds flowing into food.

　　As the grain market rises, General Mills, a US food company, will start raising grain prices.

Nestlé President Schneider said, "Today's environment is very unstable and action will be taken on price setting."

Japan's Nisshin Oliyou Group and others also proposed price increases.

　　For families whose work and income have been affected by the epidemic, the increase in food prices has dealt a heavy blow.

If prices continue to rise when wages have not risen, there will be a risk of stagnant consumption.

As a result, it will lead to a vicious circle of worsening corporate earnings.

　　The Fed believes that the acceleration in inflation is temporary.

However, with the restart of economic activities, if prices continue to rise and the currency tightening expectations in the market strengthen, investment funds may flow out of emerging market countries.

Brazil and Russia are wary of currency depreciation and rising prices, and have initiated interest rate hikes.

The choice of monetary policy of various countries is facing difficulties.