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Even large commodity price increases result in modest food price inflation

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Even large commodity price increases result in modest food price inflation
Corn, wheat, and soybeans are the top three U.S. field crops and comprise the majority of field crop inputs to the U.S. food supply. The average farm price of these crops, weighted by total production, regularly rises or falls by over 10 percent from year to year. However, these price swings have relatively small impacts on food prices. For example, in 2007-08, the production-weighted price of these crops increased by 50 percent, and food prices rose just 5.5 percent.

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Last updated: Tuesday, November 25, 2014

For more information contact: Annemarie Kuhns