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As a result of the sharp and sustained increase in input
costs, food inflation could rise by an average of 9 percent
annually between 2008 and 2012 as the rising costs are passed
on to consumers, according to a new study.
Advanced Economic Solutions, in a study commissioned by
the Grocery Manufacturers Association, said rising agricultural
commodity prices are contributing to the highest rates of
food inflation in decades.
While global economic expansion, rising energy prices and
a weak dollar continue to drive higher commodity prices,
study author Bill Lapp said the rapid expansion in the use
of corn to produce ethanol is currently the most significant
factor driving corn and other agricultural commodity prices
to record levels.
The full study can be viewed here.
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