Thursday, March 3, 2011

Inflation on Food Prices

Due to the demise of dictators, global food prices are on the rise. The unrest in the middle east has made record high food prices,which were recorded for February the highest in Twenty years. When the price of oil increases, many people try to find alternative energy sources using ethanol, which is derived from corn. When ethanol increases in production, more corn is needed driving the prices of food products up. Another factor of increasing food prices, is that cost that companies take to transport those goods. These cost then get passed on to the consumers. Some people say that they don't need to worry about problems in other countries, because it doesn't affect them. Well it does affect us, sometimes we just don't know what is causing the affect.

2 comments:

  1. I really like your insight on the issue. It is sad to think that just a little bit of turmoil can cause food prices to go up. At the same time I still suspect that oil companies are turning the conflict to their benefit right now. Yes, they really get cut off from their oil if things keep going the way that they are but then they will just run to the government and say that we need to use our reserves. In the meantime prices on everything will go up and the people running these corporations will be getting even richer while everyone is trying to get by. I don't like it.

    ReplyDelete
  2. Time for the government to stop paying farmers to not grow crops.... Our own gov controls the price of food this way. Kinda sneaky, huh?

    ReplyDelete