Analyzing Factors Affecting U.S. Food Price Inflation

Jungho Baek and Won W. Koo

No 54248, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: 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.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 18
Date: 2009-09
New Economics Papers: this item is included in nep-agr, nep-ene and nep-mon
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Analyzing Factors Affecting U.S. Food Price Inflation (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaae:54248

DOI: 10.22004/ag.econ.54248

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