ROME – A U.N. agency plays down fears of a looming world food crisis as international co-ordination and flagging demand have led to a drop in food prices for the third consecutive month in December.
The food price index of the Rome-based Food and Agriculture Organization edged down 1.1 per cent with drops in the international prices of major cereals, oils and fats. For 2012 as a whole it was down 7 per cent from 2011.
Earlier this year the agency had warned that bad weather, including severe drought in North America, could trigger a repeat of the rioting and unrest that hit parts of the developing world in 2007-2008.
The agency’s announcement Thursday said the results mark a reversal from July “when sharply rising prices prompted fears of a new food crisis.”