Tuesday, April 15, 2008

Food Inflation in the U.S. - Msnbc article

from msnbc article:

A USDA economist explained the factors everyone knows about: sharply higher commodity costs for wheat, corn, soybeans and milk, plus higher energy and transportation costs.

The other reasons: Rapid economic growth in China and India has increased demand for meat there, and exports of U.S. products, such as corn, have set records as the weak dollar has made them cheaper. That’s lowered the supply of corn available for sale in the U.S., raising prices in the U.S. Ethanol production has also diverted corn from dinner tables and into fuel tanks.