The steep and persistent rise in international food prices is hitting particularly hard on the poorest in Latin America and the Caribbean, worsening income distribution, stated ECLAC Executive Secretary José Luis Machinea. Poverty and indigence will rise if urgent measures are not taken to reduce the effects of these hikes.
International food prices have been rising over the past few years, but price increases have been particularly steep in the past 12 months. Most concerning is the growing cost of corn, wheat, rice and oilseeds, which in some cases has gone up over 100%.
As of early 2006 and especially as of 2007, food consumer price indexes have risen in the majority of the region's economies at an annual rate between 6% and 20%, with an average of about 15%.
Based on indigence projections for 2007, ECLAC estimates that a 15% rise in food prices will increase indigence by almost three points, from 12.7% to 15.9%. This means that elevating food prices will lead another 15.7 million Latin Americans to destitution. A similar number will also fall under the poverty line.
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