Analyzing Factors Affecting U.S. Food Price Inflation.

Since the summer of 2007, U.S. food price has increased dramatically. Given public anxiety over fast-rising food prices in recent years, this paper attempts to analyze the effects of market factors ─ prices of energy and agricultural commodities and exchange rate ─ on U.S. food prices using a co-integration analysis. Results show that the agricultural commodity price and exchange rate play key roles in determining the short- and long-run movement of U.S. food prices. It is also found that in recent years, the energy price has been a significant factor affecting U.S. food prices in the long-run, but has little effect in the short-run. This implies the strong long-run linkage between energy and agricultural markets has emerged through production of commodity-based ethanol in the recent years.


Subject(s):
Issue Date:
2009-09
Publication Type:
Report
PURL Identifier:
http://purl.umn.edu/54248
Total Pages:
18
Series Statement:
Agribusiness & Applied Economics
653




 Record created 2017-04-01, last modified 2017-04-04

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