Food prices are set for a period of "significant and long-lasting" inflation because of demand from China and India and the use of crops for biofuels, according to Peter Brabeck, chairman of Nestlé

Mr Brabeck said rises in food prices reflected not only temporary factors but also long-term and structural changes in supply and demand. "They will have a long-lasting impact on food prices," he told the Financial Times during a visit to China.