8th July 2011
The United Nations Food and Agriculture Organisation (FAO) food price index increased by 3 points to 234 points last month – a 39% increase on the year.
Prices have soared following concerns about weak Brazilian sugar production which has caused sugar prices to rise 14%.
Analysts at Goldman Sachs told the Guardian that commodity prices would continue rising into next year, the average food price is now only 1.6% below February's record, when the FAO's basket of 55 food commodities reached 238 points.
Brazil is by far the biggest sugar producer in the world, accounting for more than half of world trade.
Last month the World Bank was encouraging companies in developing countries to buy insurance in the derivatives markets against sudden changes in food prices, with a deal that should allow them to hedge $4bn worth of commodities.
To receive our free weekly email sign up here.