Analyzing Factors Affecting U.S. Food Price Inflation
AbstractSince 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.
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Bibliographic InfoPaper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 54248.
Date of creation: Sep 2009
Date of revision:
Agricultural commodity price; Energy price; Exchange rate; Food price inflation; Time-series analysis; Agribusiness;
Other versions of this item:
- Jungho Baek & Won W. Koo, 2010. "Analyzing Factors Affecting U.S. Food Price Inflation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 303-320, 09.
- NEP-AGR-2009-11-07 (Agricultural Economics)
- NEP-ALL-2009-11-07 (All new papers)
- NEP-ENE-2009-11-07 (Energy Economics)
- NEP-MON-2009-11-07 (Monetary Economics)
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