Food prices are higher this year because of climate changes around the world. Mostly, inflation will not affect food prices because the market of foods depends more on demand and supply. And demand is inelastic, but supply is likely to be more elastic. On the contrary, food prices will be one of the cause of inflation because foods have a higher share in our budget.In the longer term,food prices are affected by using cultivation lands to grow crops for production of ethanol such as maize, sugar and vegetable oil.
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