Tuesday, 13 January 2015

Will the world's hungry benefit from falling oil prices? - TRFN | Reuters

Will the world's hungry benefit from falling oil prices? - TRFN | Reuters

ROME, Jan 12 (Thomson Reuters Foundation) - A slump in global oil prices has brought cheaper food to many of the world's poorest, but from the slums of Manila to the fields of Malawi, the benefits are not universal.

Globally, 805 million people still face chronic hunger, according to the UN's Food and Agriculture Organisation. While the poorest in cities may see a reduction in food bills, those in rural areas, not integrated into world food markets, may not.

The price of oil dropped by half last year, the second-biggest annual decline ever, hitting a five-and-a half-year low. Oil prices have a knock-on effect on the price of food, which fell for a third straight year in 2014.

"For many poor people who spend a lot of their budget on food, this is good news," said Shenggen Fan, director general of the International Food Policy Research Institute. "There is a high correlation between oil and food prices."...
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