Rising prices due to speculation
(Letter by Fiona Hall MEP to The Journal, Newcastle, 29 March 2012 p.22, 23):
“The annual grocery bill for the average UK household has risen by more than £100 in the past year, putting additional strain on the budget of ordinary families. One of the reasons food prices are rising so steeply is that banks and hedge funds are pouring huge volumes of speculative money into food ‘futures’ markets. This destabilises prices so much that they become detached from supply and demand. As well as hurting consumers in the UK, excessive financial speculation is disastrous for the world’s poorest people. New rules to curb speculation on food are currently being discussed at an EU level, and as MEP for the North East I’m pushing hard to make sure we bring prices back under control. A number of constituents have contacted me and are campaigning very actively on the issue. I hope that together we can make a difference.”