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Are Food Prices Rising?

Over the past few decades, there has been recorded a sharp rise in food prices, taking

into consideration about 2.6% annually on average. The increase in food prices affects the

entire global population, but mostly the very most unfortunate people in the world. The low

standards of living among the undeveloped countries haven't been the only necessity that has

been gouging in their wallet recently. But the case of rising in food prices is on its peak, and

the world, in general, could face what could turn into one of the worst food crises in decades.

Several factors deployed by societies globally have seen the implication in the rising of food

prices that have consequences in their daily life.

CAUSES OF FOOD PRICES INCREASE

There are several causes of inflation in the world's food prices that drive food prices in the

long run. They are mainly categorized as either short term factors that affect the demand or

supply, or the long term that affects the reproduction and health of reproducing plants. The

long-run is as a result of weather, animal diseases, and catastrophes. Some of the causes are:

Disposable income. As income rises, consumers increase their expenditures on food, which

also increases food prices. Higher disposal income partly explains many of the changes in the

mix of foods being consumed. For instance, people are eating more cheese, beef, and frozen

vegetables, this case of consumption will likely cause a slight increase in prices for those

products.

Dollar or Other Global Equity Devaluation. As the Federal Reserve continues to print money

to improve and stabilize the economy, inflation has become a pitfall and has [ CITATION
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Kal19 \l 2057 ]. The U.S. dollar's devaluation is particularly damaging, while various

commodities are priced in U.S. dollars.

Increase in the Price of Oils. Fuel is used in the manufacturing of many food products.

Furthermore, fuel is used in the transport of food; as a result, it causes higher oil prices; food

prices are also rising subsequently.

EFFECTS OF FOOD PRICES RISING

Lack of provision of Basic Services and Social Protection. Low-income food-importing food-

importing countries are currently facing surging food bills. In a context of scarce national

resources, in response to the high costs in the food processing, the government's ability to

provide public services reduces

Effects on Household Income. Higher food prices have a significant impact on the real

income of poor households. As the expenditure of each family may vary depending on

whether the homes are producers of food or net consumers, almost half of the household

budget may spend on food in low-income countries. Therefore, any increase in food prices is

likely to have a disproportionate impact on the poor, and estimates suggest that disposable

incomes will be decreased by a quarter as a consequence[ CITATION Reb18 \l 2057 ].

Change in the Labour Market. Possible opportunities for increasing agricultural production

could increase demand for farmworkers. Growing opportunities for jobs are also likely to

increase household incomes. The disadvantage is that a rise in the demand for workers or the

need to support household income may also increase the participation of children in the labor

mark, depending on household decisions.

EVIDENCE OF THE CAUSES AND EFFECTS OF THE FOOD PRICES RISING

Causes
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Higher disposable income partly explains many of the changes in the mix of foods being

consumed. People will tend to eat fewer eggs, lamb, less pork, and using less condensed and

evaporated milk than they used to.

As inflation states continue to be a big challenge to many countries, fall in the value of

currency faces the country as a challenge which primarily affects the poor in financial status

As food production relies on oil, that provides transport and production necessities, the oil

will also affect farming. Oil by-products are significant components used in making

fertilizers. An increase in oil price also means an increase in prices of fertilizers, which may

be difficult for producers to purchase.

Effects

Rising in food household is likely to reduce the ability of government to spend on social

services since rising food import bills tend to deflate the economy and affect the revenue

collection.

Any increase in food prices is likely to have significant effects on the poor, and it is estimated

that disposable income will be cut short by a quarter.

As the population tries to take advantage of agricultural production, the needed for workers

will significantly increase. Women may participate in employment, which will mean that

there is less time for childcare and other domestic responsibilities, which may be essential to

other family members.

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Work Cited

Holmes, R., Jones N., and Wiggins, S. Understanding the Impact of Food Prices on Children.

London: Plan U.K., 5-6 Underhill Street, 2018.

Smith, Kalen. How Rising Food Prices Will Affect You & 6 Ways to Prepare. 2019

SparkCharge Media, 2019.