Food grain prices have more than doubled since January 2006. Individual grain staple prices have increased even more, with monthly average wheat prices doubling since January 2006 and rice prices tripling between January and April 2008 alone. Prices have risen due to a number of individual factors that have led to a price spiral, including: high energy and fertilizer prices; the depreciation of the US dollar; sharply increased use of both cereals and vegetable oils in bio-fuel production; and declining global stocks of grains due to changes to buffer stock policies in the US and EU. Rising global food prices are contributing to high domestic prices. As a result, up to 105 million additional people worldwide could fall into poverty. Even in countries where food security is less precarious, such as Tanzania, the price of the key staple, maize, has doubled in the past year. Recent World Bank studies suggest that total world poverty may have increased by 73 million to 105 million people due to rising food prices, and close to 30 million additional persons will fall into poverty in the African continent alone.

- What is IDA? The International Development Association (IDA) is the part of the World Bank that provides interest-free credits and grants to the world's poorest countries. Learn more
- World Bank's response to the Food Crisis.