MercoPress. South Atlantic News Agency

Food inflation in South America is higher than the average overall index

However in Argentina and Chile food inflation doubles average inflation

In the last two years inflation in Latin America has stabilized varying between 6% and 7%, according to the latest monthly report from the FAO (Food and Agriculture Organization) regional office.

Annual food inflation has also stabilized, although its variability has been far more pronounced during the last 24 months. Annual food inflation reached 8.6% in February.

“Food inflation has been higher than overall inflation in the last two years, Taking February, annual food inflation is two percentage points above overall inflation” said Fernando Soto Baquero, head of FAO policies, who also pointed out that in Chile, Argentina and Panama “food inflation is double the overall index”.

FAO food international prices index jumped 1% from January to February this year, but is well below the prices index for other commodities.

In February annual food price inflation was down in Bolivia, Brazil, Colombia, Paraguay and Peru. In Bolivia it was down from 4.2% to 1.8%, and in Paraguay it also experienced a significant reduction.

However in Argentina and Chile the annual food inflation index was above 9% in February 2012.

Chicken was the item with the highest incidence in overall inflation for Bolivia, second most important for Mexico and third for Ecuador. Beans were the second most important item for inflation in Bolivia, Ecuador and Colombia. Tomatoes had the main impact in Nicaraguan food inflation and onions played a similar role in Colombia and Bolivia.