The mystery of food prices
The fall in raw materials and energy prices is “contributing decisively” to the fall in the price of transport at all stages of the value chain. This is accompanied by significant falls in the price of certain agricultural commodities such as wheat, rice and sugar. However, these contractions are not being passed on to food prices, so why is this happening?
Miguel Sebastián, economic advisor at GATE Center, explains the reasons behind this paradox in his analysis article for the newspaper El Español “El misterio de los precios de los alimentos” (The mystery of food prices).