Development agencies providing protein supplements to vulnerable third world countries are being particularly affected. BIS Review 63/2007  7  This partly explains the accelerating rates of food price inflation in other parts of the world. US food prices have risen by 6.7 percent since the beginning of the year while UK food price inflation recently reached 6 percent.
In comparison, annual growth in New Zealand’s food price index has been more muted, around 4 percent in annual terms. However, with dairy and other food prices continuing to increase there may be additional upward pressure on New Zealand’s food prices in future. This has implications for monetary policy, which will be discussed later on.