MercoPress. South Atlantic News Agency

Food prices have soared most in Venezuela, Bolivia and Argentina

Some countries however managed to contain the food price index last January

Venezuela, Bolivia and Argentina are the three Latinamerican countries where food prices have climbed the most during the twelve months of 2010, according to official regional statistics.

Data shows that in the twelve months to January 2011, food prices in Venezuela soared 37.2% (above the country’s inflation of 28%); Bolivia follows with 14% (8.4% inflation) and Argentina 13.1% and 10.6%.

(In Argentina the official inflation figures are contested by the business communities, labour unions and in rulings from the Judiciary branch; the overall consensus is that inflation in 2010 was in the range of 25%).

Other countries with two digit food prices are Paraguay 12.3% and 7.8%; Nicaragua, 11.2% and 8% and Brazil, 10.4% and 6%.

Lately Argentina, Brazil and Nicaragua are showing attempts to contain the food price increase, which nevertheless persist in Paraguay, Venezuela and Bolivia.

Annual food inflation was almost double the retail price index in Costa Rica, 8.6% and 4.8%; Chile, 5.5% and 2.7% and El Salvador, 6.7% and 2.3%.

However it must be pointed out that in some countries the tendency is for an overall rise in all prices, such is the case of Venezuela and Bolivia, while others have suffered the hike in food prices which then pushed up the average inflation.

Furthermore in January 2011, some Latam countries have managed to contain the increase in food prices such is the case of Chile, Honduras and Nicaragua.

But experts advise that numbers must be analyzed with caution and longer periods should be considered given the volatility of food prices in Latam, which is basically heterogeneous regarding food production and consumption.

By items in all countries the price of bread, cereals and pasta have increased including the corn tortillas, which is an extended (and subsidized) staple in Mexico and Central America.

Other products suffering increases are cooking oils, sugar, fish and sea food.

The countries which are recording overall rises in most food products are Argentina, Brazil, Guatemala, Honduras and Uruguay.