Monday, February 25, 2008

Commodities Boom Sends French Food Prices Rocketing

Mon Feb 25, 2008 8:06pm GMT

PARIS (Reuters) - Prices of grain and milk-based food products have surged in France in recent months due to booming commodities prices, a French consumer group said in a report.

A monitoring of over 1,000 products between the end of November and early January in five supermarkets showed that yoghurt, milk and pasta had most suffered from the surge in many agricultural commodities that started last year.

"They're not rising, they've caught fire," monthly 60 Millions de Consommateurs said in its March report, circulated ahead of publication on Tuesday.

"Everywhere since the start of the year, spaghetti, yoghurt, camembert cheeses, have seen staggering rises in prices," it said, stressing that the surge had hit all types of products, famous brands as well as supermarket own-brands.

Two hundred products saw a rise of more than 10 percent over six weeks, with the packs of spaghetti reviewed rising between 31 and 45 percent, plain yoghurts between 17 and 40 pct and bottled milk between 20 and 37 pct.

Prices of agriculture products have surged across the board this year, hitting everything from cereals to milk and meat. Some economists have labeled the rise "agflation," attributing it to tight stocks and surging demand from emerging countries.

No comments: