By Fester
I have written a couple tongue in cheek food inflation posts in the past couple of months as I have noticed things are getting more expensive at the grocery store and when I'm grabbing lunch at work. Portion sizes are getting a little smaller, more vegetarian options are popping up as meat option replacements at my favorite (and nearby) Indian buffet and getting a good burger is costing a couple of bucks more.
Barry at the Big Picture has an amazing video from the Secretary of Agriculture on food inflation.
"Internationally we're looking at a 43% inflation rate in food this year," Ed Schafer, US secretary of Agriculture, told CNBC Tuesday. Schafer said the big driving factor was energy
In middle class America the proportion of our income that goes to food is comparatievly low so while signficant price increases will be noticable, it will not be amazingly painful. However once you leave the industrialized world middle class, the proportion of an individuals' budget that goes towards food is significant. Poorer countries have typical individual food budgets of between 30% to 70% of individual income. There is no disposable income cushion that allows for relatively easy substitution between eating the same basket of primarily vegetarian options and anything else other than reducing overall food consumption. This means going from two meals a day to a single meal a day in parts of India to a single meal a day. This means shifting from complex and nutrient rich carbs to simple and empty carbs. It means a lot of suffering among the least advantaged. It also means massive political instability.
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