Global food prices rise dramatically - UN

International food prices rose sharply in July after three months of decline, driven by a spike in grain and sugar prices, a United Nations report said on Thursday, CBS News quotes Associated Press.

The severe drought gripping the US Midwest has sent corn prices soaring by almost 23 percent and expectations of worsened crop prospects in Russia because of dry weather sent world wheat prices up 19 percent.

The United States is the world's biggest exporter of corn, soybeans and wheat and the price hikes are expected to be felt across the international marketplace, hurting poor food-importing countries, a study by British charity Oxfam issued on the eve of the UN report said.

The Rome-based U.N. Food and Agriculture Organization said in its monthly price report on Thursday that its index climbed 6 percent in July, although it was well below its peak reached in February 2011.