Several factors influence low food price inflation | TSLN.com

Several factors influence low food price inflation

Several factors have led to a five-year decline in food inflation, according to a report released this week by the Agriculture Department’s Economic Research Service.

“We explore some concurrent factors that resulted in lower food prices: increases in farm- and wholesale-level production and changing input prices for other factors of production; exchange rate variations; marketing costs; market power in food retailing; and increased competition from food services,” the ERS economists wrote.

“While there are many reasons for the observed food price deflation, we focus on these factors because they are likely to have had the biggest impact on food prices in 2016 and 2017 based on food industry reports.”

–The Hagstrom Report


Support Local Journalism

Readers like you make the Tri-State Livestock News’ work possible. Your financial contribution supports our efforts to deliver quality, relevant coverage of the livestock industry.

Now more than ever, your support is critical to help us keep our community informed about the evolving coronavirus pandemic and the impact it is having locally. Every contribution, however large or small, will make a difference.

Each donation will be used exclusively for the development and creation of increased news coverage.

 


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.