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Higher food prices here to stay
22 Feb 2008
The Reserve Bank of Australia has flagged its concern over rising food prices but says that this year should be better for farmers. In a report analysis released by the RBA's Economic Analysis Department yesterday the bank said that food prices will in part depend on rainfall levels, but warned that pressures from global demand are likely to keep prices higher than seen over recent decades for some time. Speaking in London last month, RBA governor Glenn Stevens said that rising food prices were often stripped out of underlying inflation measures as it was assumed they were temporary jumps, but global demand driving commodity prices higher has proved to be consistent rather than temporary.
The Australian Financial Review, 22/2/2008
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