The threat of food inflation, a serious concern for emerging countries last year, is starting to recede as high prices for grains restrain consumption and better crops in Europe and Russia replenish stocks.
The UN’s Food and Agriculture Organisation yesterday said its food index fell last month to its lowest level in more than a year, reflecting falls in inflation across Asian nations.
At the same time, the US reported that the country’s domestic production and stocks of corn, a key commodity for the global food chain, were higher than previously thought, sending prices sharply down.
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