Title: Why Are Food Prices So High?
Headings: Why Are Food Prices So High?
Why Are Food Prices So High?
Content: The same thing works with supply. Rising supply on constant demand causes a fall in prices while falling supply on constant demand causes prices to increase. So one could conclude that rising food prices have been caused by falling supply or increased demand. This is true, but there is a lot going on behind the scenes causing this. What’s going on? 1) China and India have the largest and fastest growing populations creating demand for food from around the world. So one impact on prices has been rising demand from these countries, especially China. 2) The Japanese tsunami and earthquake last year drove up seafood prices by nearly 6%. 3) Vegetable prices rose 50% in the past month. Crop damage in Australia, Russia, and South America are to blame.