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Food Price Inflation: Causes and Impacts (CRS Report for Congress)

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Release Date April 10, 2008
Report Number RS22859
Report Type Report
Authors Tom Capehart, Resources, Science, and Industry Division; Joe Richardson, Domestic Social Policy Division
Source Agency Congressional Research Service
Summary:

U.S. food prices rose 4% in 2007 and are expected to gain 3.5% to 4.5% in 2008.Higher farm commodity prices and energy costs are the leading factors behind higherfood prices. Farm commodity prices have surged because (1) demand for corn forethanol is competing with food and feed for acreage; (2) global food grain and oilseedsupplies are low due to poor harvests; (3) the weak dollar has increased U.S. exports;(4) rising incomes in large, rapidly emerging economies have changed eating habits; and(5) input costs have increased. Higher energy costs increase transportation, processing,and retail costs.
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