Title: Why Are Food Prices So High?
Headings: Why Are Food Prices So High?
Why Are Food Prices So High?
Content: Entrepreneurs
Commenting on Business & the Economy
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Food prices have skyrocketed over the past couple years. While overall U.S. food prices rose about 5% last year, earlier in the year food inflation was the highest recorded in 36 years. The USDA sees food prices rising 2.5%-3.5% in 2012 but many believe that inflation could be much higher. This is concerning since the economy is not rocketing and interest rates are near zero. Why are food prices so high? Historically, food was a local issue as supply chains were short. Food supply and demand were largely functions of local crop conditions impacted by weather, growing conditions, pests, etc. Over the past century, supply chains and preservation have improved so that the food trade has become international. Commodities, crops, and finished goods are traded globally.