IMF: Food Prices Will Remain High

(Source: IMF)

IMF published its March 2011 Finance & Development issue to address a key statement -- Higher food prices may be here to stay.
 
According to Thomas Helbing and Shaun Roache, two staff members of IMF's research department, these price spikes are results of poor weather around the world. As energy prices increases, it will create a knock-on effects on food.

The most crucial explanation is that "consumers in emerging and developing economies are eating more high-protein foods such as meat, dairy products, edible oils, fruits and vegetables, and seafood. These products are more “income elastic” than staple grains.

However, every cloud has a silver lining. IMF staff reports that growth in supplies will take the pressure off costs and slowly take the pressures off on food markets over time. But, "this will take time counted in years rather than months.”