Last updated on February 6, 2011
In a pithy blog post last weekend, Paul Krugman explains how the increase in food prices actually came after an increase in the price of other commodities:
“Food was actually a latecomer to the commodity price surge. Overall commodity prices have been rising rapidly since world industrial production bottomed out. Food prices mostly didn’t follow until last summer — which is when the weather started going crazy in Russia and elsewhere.”
I would have liked to read more of Krugman’s thoughts on this topic, but even he admits that that post is mainly a note to himself.