Worldwide, high crude oil prices, increasing extreme weather events, population growth and economic development of poorer countries, crop-based biofuels, political conflict and unrest in the Middle East, and slowing crop yield growth are all factors contributing to rising food prices.
In the U.S., you can add that the value of the dollar has decreased significantly.
Here are some stats on recent rising food prices:
- Wholesale food prices jumped 3.9% in February (compared to January) in the U.S., the highest month-to-month increase in 37 years.
- Americans spend about 10% of their income on food, while people in some countries spend about 70% of their income on this basic necessity.
- Some key crops have seen price increases of 40-80% over the last year (wheat prices have increased 80%).
- World food prices hit a record high this year and starvation is growing in countries where people spend 40-70% of their income on food. 44 million more people have been forced into hunger this year according to the World Bank.
For more on why food prices are rising and why they are likely to continue rising, check out: Food Prices Rising Fast in U.S., More to Come?
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