As we’ve been discussing in our fuel frustration series, the high cost of oil affects almost everything in our daily lives.
Now a new UN report says, the global price of food is skyrocketing.
It’s only logical. The world runs on oil, and that includes the food producing parts of the world.
And the cost of that production has gone sharply higher along with the new price spikes in oil.
And that has repercussions not only in the supermarket, but in the streets of the third world…
It is easy to forget, the current wave of protests, and ultimately regime change in the Middle East began with a food seller in Tunisia who immolated himself over the state of the economy and his anger over the government.
Now the United Nations reports that global food prices have reached their highest point in 20 years.
The culprit is oil…
The UN Food and Agriculture Organization says that the food price index rose 2.2% last month for the 8th month in a row.
Cereals, meat and dairy products have seen the greatest increases, and the only commodity that has remained stable is sugar.
Wheat is up 60% so far this year. And the worst is yet to come, with oil still rising.
And the resulting expense and scarcity of basic food could trigger more violence and unrest around the Middle East, and that in turn produces more oil jitters, and so on…
In 2008 there were food riots in several countries.
And obviously, the rising price of food will impact our family budgets just like the rising price of gas. But if you are in Libya making a couple of bucks a day, that may be enough to send you into the streets.