LONDON, England - September 5, 2010 - Two years after the last food crisis, when prices surged by nearly 15% in the UK, food inflation is back. Soaring global food prices have prompted city officials and food industry experts to warn that the cost of the weekly shop is set to rise by up to 10% in the coming months.

As in 2008, rocketing prices are the result of rising demand and supply shortages caused by freak weather and poor harvests. Moreover, these conditions are exacerbated by speculation on commodity markets and changing diets in fast-growing Asian countries.

Last week, the UN's Food and Agriculture Organization (FAO) called an emergency meeting for September 24 to discuss the food crisis. In Mozambique, riots broke out following the government's decision to raise bread prices by 30%, leaving seven people dead and hundreds injured. At the same time the Russian government extended its export ban on wheat by another 12 months as it battles drought, shortages and inflation at home, which threatens to push up prices further.

European wheat prices hit more than €231 (£192) a tonne last week, just below last month's two-year high of €236 but still 60% higher than a year ago in sterling terms. Corn prices are at their highest level since June 2009 while sugar has been on a rollercoaster ride after hitting a 29-year peak in February.