Corn prices a "statistically insignificant variable" in driving food price hikes: study

In Washington, Informa Economics released a new study (funded by the Renewable Fuels Foundation) entitled “Analysis of Corn, Commodity, and Consumer Food Prices”. Informa concluded that “the statistical evidence does not support a conclusion that there is a strict ‘food-versus-fuel’ tradeoff that is automatically driving consumer food prices higher.”

The new study found that “…there has historically been very little relationship between annual changes in corn prices and consumer food prices. The corn price would be considered a statistically insignificant variable in determining what drives the food [consumer price index].”

“Ethanol is not the only driver influencing corn prices, and corn prices have not been the only factor driving consumer food prices,” said Bruce Scherr, CEO and Chairman of Informa Economics. “Rather, there is a complex and interrelated set of factors that contribute to corn and food prices. Further, the farm share of the retail food dollar is relatively small. Increases in other marketing bill component prices are contributing to food price increases.”