World Food Prices Hit New High

Food prices around the world hit a new high in February, according to the United Nation's Food and Agriculture Organization's monthly Food Price Index released earlier today. The index, which has measured food prices since 1990, reached 236, up 2.2% month over month and up 57% over the past 12 months.

Part of the problem is the rising price of oil. Food prices and oil prices are inexorably tied together. Directly, most food, including grain, is grown and transported by oil-burning vehicles. Indirectly, as the demand for fuel rises and the price increases, more farmers have an incentive to plant corn for ethanol, thereby reducing the food grain supplies.