Food inflation a threat to recovery: WB

Written by Reuters | Devos | Updated: Jan 28 2011, 06:55am hrs
Higher food prices pose a major threat to the global economy and social stability but policymakers must not over-regulate commodity markets, a senior World Bank official said on Thursday. Ngozi Okonjo-Iweala, MD at the Washington-based bank, said rising food prices are squeezing the poor and contributing to social instability. Higher food prices and volatility are two of the biggest threats to the global economic recovery and social stability. You saw what happened in Algeria and other countries recentlytheres no doubt higher food prices and a stress in living standards are taking a toll, he said. This will hit the poor the hardest. We're not going to see cheap food prices again because this is a long term phenomenon... We need more investment in Africa because more than 50% of arable land in the world today is in Africa.