OECD head sees food prices slowing, oil high
PARIS (Reuters) - Average world food prices will retreat from current peaks but will still be up to 50 percent higher in the coming decade than in the previous 10 years, OECD chief Angel Gurria said on Tuesday.
"We have the view that...food prices are not going to remain at their present level -- although they are going to remain anywhere from 10-50 percent higher than they were in the last decade on average in the next 10 years," he told reporters at the Paris-based Organization for Economic Cooperation and Development.
"In the case of oil prices, which are part and parcel of food prices, we are not envisaging a very dramatic reduction, he said, adding: "we may see some easing."
Gurria's comments came on the day that world leaders opened a conference in Rome on the global food crisis triggered by soaring agricultural commodity prices.
After a long period of low food prices in much of the world, the prices for many major staples like rice, corn and wheat have soared in recent months, with some prices reaching their highest levels in 30 years in real terms.
Gurria said that uncertainties over energy supplies as well as basic supply constraints had helped push crude oil prices to record levels and the situation was unlikely to change.
"This is not a speculative spike, which is part of the problem in the case of food. This is a basic problem of supply and demand and security," he said.
