Catastrophic flooding and crop losses in Thailand, the world's leading rice exporter, are raising concerns that another food crisis may be in the offing. More disquieting is the possibility that the world may have already entered a new era where persistently high food prices are the "New Normal."
At a time when policymakers are grappling with a host of thorny economic issues, the possibility may be unwelcome, but must not be ignored.
Although volatility in commodity markets is nothing new, there are worrying signs that food-price fluctuations are now taking place within a much higher band than ever before. Even when prices dip they remain high by historic standards, and when prices rise it's enough to put a serious dent in families' budgets.
For Asia's poor, who already spend 60 percent of their household budget on food, even the smallest fluctuation in food prices forces unenviable choices on where best to devote their scant resources. More money for food means less for healthcare, education or other important expenditures. It also means that those striving to escape absolute poverty are less likely to do so, while millions more risk falling below the $1.25 a day poverty line.
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