Indonesia chilly prices hit record high

JAKARTA (Commodity Online): As the price for the once humble chilli has nearly tripled in recent months in Indonesia, driving up inflation and sparking official concern, threatening to put country’s favourite spice the chilli pepper beyond the reach of many.
Susilo Bambang Yudhoyono, the president of Indonesia, has even urged Indonesians to grow their own chillies in pots to reduce Indonesia’s exposure to volatile prices.
The chilli price hike is part of the food price shock announced by the UN after its index of farm commodity prices soared to a record. The UN’s Food and Agricultural Organisation said this week the world faced “a food price shock” after its index of farm commodity prices soared to a record, surpassing the levels of the 2007-08 food crisis.
Indonesia has been hit hard by heavy rainfall, which has hurt coal and palm oil production and driven up the price of rice more than 10 per cent, forcing the government to import expensive rice for distribution to the poor.
Food accounts for up to a fifth of the basket of goods used to measure Indonesia’s inflation rate, helping to drive core inflation up to nearly 7 per cent in December, one percentage point above the Bank of Indonesia’s target range of 4-6 per cent.
Alongside last year’s healthy growth rate of 6 per cent, a surging stock market and foreign capital inflows at record levels, the food price rises have prompted concerns that the economy is overheating.

(Source: http://www.commodityonline.com/news/Indonesia-chilly-prices-hit-record-high-35517-3-1.html)