World food price inflation

Thursday’s Daily Chart at economist.com shows a wide variation in the rate of food price inflation around the world, from increases of 15% in Russia to a fall of 1.3% in China. Bearing in mind the weight that is attached to food purchases in countries with a lower disposable income, where a higher proportion of income is spent on food than in the developed economies, this is worth looking at to assess how the local economies of the countries will be affected. Also worth looking at the BBC’s World Service Food Price Index from June 1st, which tells a similar story and looks at a basket of five staple foods in seven major cities around the globe.