Food Crisis: In Grip of Financial Markets

Article no: EN20080601-Article-3.3-2008

Food Crisis: In Grip of Financial Markets

The current price hike in food markets, some say, is caused by increasing demand, be it from emerging economies or for the production of biofuels, by rising input prices, such as oil and fertilizer, and by low stocks. Others consider food speculation the culprit. No doubt, agflation as the phenomenon has been dubbed, can partially be explained by speculation, says Rainer Falk