The global economy, despite recording impressive economic growth in this decade, is facing its' highest inflation numbers in over a decade. This effect has been magnified in developing economies, especially with necessities such as food and energy. As usual, the cause is supply and demand. One of the reasons, among many others, is the use of crops for alternative fuels. As more food is used for fuel, less is available for food, which of course drives up the price ...and this is especially hard on developing economies and has the potential to create political instability (note the picture of riots in Egypt over food prices). Read more in today's Wall Street Journal here.
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