Food Prices High Until 2012 Says World Bank's Zoellick

Submitted by SadInAmerica on Sun, 07/13/2008 - 3:14pm.

AMSTERDAM - World Bank President Robert Zoellick said on Saturday he expected food prices to remain above 2004 levels until at least 2012 and energy prices would also remain high and volatile.

He repeated that with food and fuel prices in a "danger zone" there was a need for $10 billion to provide food and cash handouts for the world's poorest.

Soaring oil and food prices have fuelled inflation across the globe at the same time as economies slow, posing a sharp dilemma for lawmakers.

Earlier this week, leaders of the Group of Eight rich nations in Japan agreed on the need to address global inflation, particularly elevated oil and food prices.

"I think the statement on food security was a good statement, but the test will be on the delivery of the action," Zoellick said.

"During the meeting I tried to emphasize that I feel we are in a danger zone of high food prices and fuel prices and there is a great need for additional resources."

He added that several countries had made substantial contributions towards the $10 billion sum, but funds would be needed continuously over the next years.

July 13, 2008 - source Reuters

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Submitted by SadInAmerica on Sun, 07/13/2008 - 3:14pm.