1、Order Code RS22859April 10, 2008Food Price Inflation: Causes and ImpactsTom CapehartSpecialist in Agricultural PolicyResources, Science and Industry DivisionJoe RichardsonSpecialist in Domestic Social PolicyDomestic Social Policy DivisionSummaryU.S. food prices rose 4% in 2007 and are expected to ga
2、in 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
3、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.Although the cost of commodities such as corn or wh
4、eat are a small part of the finalretail price of most food products, they have risen enough to have an impact on retailprices. Generally, price changes at the farm level have a diminished impact on retailprices, especially for highly processed products.The impact of higher food prices on U.S. househ
