Welcome to the United Nations
February 2011
Summary:
- International food prices increased to record levels, contributing to both political unrest and greater uncertainty about the global recovery; other commodity prices also increased strongly in January
- The economic recovery in the United States and Europe remains too weak to push unemployment ?rates down
- Economic growth in developing regions is still robust, though its pace is moderating in some countries
According to the Food and Agriculture Organization of the United Nations (FAO),?the world food price index reached an unprecedented high of 231?in January, accelerating the recent upward trend that started in mid-2010.?The prices of sugar, oil and fats, and cereals increased strongly. Multiple?factors are driving these trends, including supply shortages caused by droughts and?floods in important production areas while demand?both for consumption and?biofuel usage?continued to increase. The depreciating dollar has compounded upward pressures on commodity prices. Oil prices also shot up, influenced by?the recent political unrest in Northern Africa, which has compounded other upward?pressures, including the recovery in global industrial activity, severe winter conditions?in the Northern hemisphere, and insufficient investment in oil production capacity.
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Download the World Economic Situation and Prospects Monthly Briefing No. 28