If there is one economic indicator that almost anyone can relate to, it is the price of food, and for the past several years food prices have been going up year over year.
In 2008, food prices globally rose to unprecedented levels. While there was a marked drop in the next year, prices spiked again in mid-2011, exceeding 2008 levels and remaining relatively high through the rest of year and all of 2012. Many factors influence food price volatility, including agriculture and energy policy, commodity prices and market speculation, extreme weather events, rising global demand, and falling surplus stocks.
One reason for the sustained price increases is the pervasive drought that has plagued the U.S. since 2010 and that has by now affected more than 65% of the country. The ramifications of these drought conditions are profound.
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