World Bank economists conclude food price increases sparked largely by oil price jumps, not biofuels

June 17, 2013 |

At the World Bank, economists took on the problem of food price increases, noting “From 1997–2004 to 2005–12 nominal prices of energy, fertilizers, and precious metals tripled, metal prices went up by more than 150 percent, and most food prices doubled. Such price increases, especially in food commodities, not only fueled a debate on their key causes, but also alarmed government officials, leading to calls for coordinated policy actions.” In their analysis, the researchers found that — for maize, wheat, rice, soybeans, and palm oil — “most of the price increases are accounted for by crude oil prices (more than 50 percent), followed by stock-to-use ratios and exchange rate movements, which are estimated at about 15 percent each.”

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Category: International

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