Food prices surging around the world

Drought conditions in Russia and North America caused worldwide food prices to increase by 6 percent in July, according to the United Nations.

Maize prices increased by nearly 23 percent, while wheat costs increased 19 percent.

On the contrary, sugar prices increased 12 percent, because heavy rains in Brazil washed out large portions of crop.

Meat prices were held at bay by softening demand, declining 3 percent.

Separately, Bloomberg reported combined inventories of corn, wheat, soybeans and rice will drop 1.8 percent to a four-year low before harvests in 2013.

Looking forward, it is expected meat prices to move higher into the coming year.

The severity of food prices inflation depends on how long the weather conditions last in major food-producing countries like India, Russia and the United States

The world food supply isn’t as lean as it was during the international food crisis of 2007 and 2008, because, even though corn prices are prohibitively expensive, consumers have other foods to fall back on.

Consumers will get a better idea of where food prices are headed Friday, when the U.S. Department of Agriculture releases its World Agricultural Supply and Demand Estimates, which forecasts supply and demand for crops and livestock around the world.