Tag: food price inflation

Rapidly rising food prices have led to instability in many countries and have fuelled inflation in less developed economies where food spending is a greater proportion of overall consumer spending. A number of factors have contributed to this rapid rise in prices, but one important contributory factor is the move towards growing crops that can be used as bio-fuels in the developing world and this shift in production is having a knock-on effect in world food markets.

Big food companies accused of risking climate catastrophe Guardian (8/11/07)
An agricultural crime against humanity Monbiot.com (6/11/07)
Global food crisis looms as climate change and fuel shortages bite Guardian (3/11/07)

Questions

1. Identify the main factors that have led to rising world food prices.
2. Assess the extent to which the move towards bio-fuels has contributed to the rise in world food prices.
3. Explain how the impact of rising food prices differs in the developed and developing world.
4. Discuss policies that governments could adopt to ameliorate the impact of rising food prices on the level of economic growth.