- ANTARA/Ampelsa
VIVAnews - The rise in global poverty rate has largely been driven by the doubling of food and energy prices. Food Price Watch in February 2011 noted poverty rate hiked by 44 million families, which is equal to 0.8 percent of total population in low- and mid-income countries.
Shubham Chaudhuri, chief of economists at the World Bank of Indonesia said in a statement that global food prices increase will cause 68 million people to be categorized poor.
"Within the past five years, poverty rate reaches its climax [this year]," he said in Jakarta.
Higher prices chalked up by rice has seriously affected farmers. According to Chaudhuri, farmers are prone to the flux in food and energy prices.
Most Indonesians allocated up to 50 percent of total expenses to food products.
"It's true that 2011 records growth in investment, manufacturing, services. China and India also had more demands in commodities. However, fluctuating food prices have worsened poverty rate."
"This year, poverty rate will equal one which occurred between 2005 and 2006," he said.
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