Food Price Rise Could Last Two Years
CNN Money reports that consumers will have to get used to paying more for their groceries over the next two years. Concerns with rising food prices worldwide are part of anticipated five-year cycles, agricultural economists claim.
Prices flare up in the first two to three years of the cycle and then start to moderate by the fourth or fifth year, said Chris Hurt, agricultural economist at Purdue University .
If 2007 was the first year of this latest cycle, Hurt said farm supply could start catching up to demand by 2010, helping to push down milk, bread, cereal and other grocery prices.
Until then, “Americans will be moving backward in their [food] lifestyle.” By that he means that more families will trade down to cheaper food alternatives, or eat out less often, in order to adjust their budgets to both higher food and fuel costs.
Global Voices Online covers the global impact of rising food costs worldwide and says that rocketing prices are partly responsible for demonstrations, riots and even the fall of governments. It provides an interesting roundup of how the crisis has affected countries, especially in the developing world.
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