Food Inflation Pushes Millions Into Extreme Poverty

A sharp rise in food prices since June has pushed 44 million people in developing countries into extreme poverty — having to live on less than $1.25 a day — according to a new study by the World Bank.

The bank’s price index soared 29 percent from January 2010 to January 2011 (15 percent just from October to January). Wheat, maize, sugar and edible oils have seen the sharpest price increases in the last six months, with a relatively smaller increase in rice.

The rising prices have increased the vulnerability of economies, particularly those that import a high share of their food and have limited capacity for government borrowing and spending.

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