Wednesday, April 02, 2008

Are Food Price Increases Good For Us?

Kim Severson has written an excellent story for today's New York Times about the possible results of changes in food prices.

She explores a tough issue that has been on my mind, whether higher prices of some foods will lead to a change in the kinds of foods Americans buy and eat or not. She notes that the price of some food--commodities (grain, corn, etc) in particular--has become more closely correlated to the price of fuel and that rising prices for those foods make what had been more expensive foods--grass-fed meats, organic produce, milk and eggs--relatively less expensive. She also explores whether this equalizing of price will change consumer behavior (conclusion: the jury is still out). It's well worth the read if you want a good overview of both the changing economics of food and the possible implications of a change on the health and eating habits of Americans.

UPDATE: Ezra Klein comments here on this story and about the likely effect of an economic downturn on eating habits in general.

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