Speculators driving up food inflation

SPECULATORS have bought 15 per cent of the world's supplies of agricultural products such as sugar, wheat and cocoa, which has driven up food inflation, a new report has shown.

Hedge funds and other financial institutions have ploughed a record 76 billion into basic food stuffs, more than double the level three years ago, Barclays Capital said.

The price of food has soared to levels not seen since 2008, when food riots swept the developing world. Prices have also been driven up by strong demand from developing economies.