In recent years there has been a significant rise in global food prices that has given rise to the term agflation
Causes of high global food prices
Many demand and supply factors have contributed to increasing prices:
Economic consequences of high global food prices
Social consequences of high world food prices
Food price inflation and government intervention
Agflation brought a wide number of policy responses from countries around the world. They included:
Estimate of the impact of high food prices on poverty
According to estimates from the World Bank, the increase in local food prices between January 2005 and 2008 increased extreme poverty by between 186 and 226 million people. It has revised its previous estimate and now says that 1.4 billion people live in poverty, based on a new poverty line of $1.25 per day.
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