Persistently high food inflation and fast shrinking food stocks are the dangers currently faced by the world as it is severely hitting the poorest and the most vulnerable, World Bank chief Robert Zoellick said.

"Vigilance is vital given the uncertainties and volatility that exists today," Zoellick said. "Persistently high food prices and low food stocks indicate that we're still in the danger zone, with the most vulnerable people the least able to cope. There is no cushion," he added.

The World Bank Group's Food Price Watch released Tuesday showed that prices overall remained 33 percent higher than a year ago with commodities such as maize, sugar, wheat and soybean oil contributing to the increase.

Crude oil prices are 45 percent higher from July 2010 levels, affecting production costs and the price of fertilizers, which increased by 67 percent over the same period.

Prices from April through July settled roughly five percent below the recent spike in February due to modest declines in grains, fats and oil, and other foods such as meat, fruits, and sugar.

The Horn of Africa is the most affected by high food price levels. The emergency in the Horn of Africa was triggered by prolonged droughts, while food prices that are near record high levels seen in 2008, also contributed to the situation.

The quarterly report warns that global food stocks remain low, and potential volatility in the prices of sugar, rice, and petroleum products could have unexpected effects on food prices in the months ahead. Zoellick said that the World Bank is stepping up to address this crisis with a sense of urgency.

RTTNews