Abstract: The primary causes of food price rises in this decade have been agricultural commodity shortages caused by bad weather and increased food marketing costs, especially labor costs, spurred by inflation. Lack of sufficient data makes it difficult to determine why food prices do not fall when farm prices fall. Government and food industry's roles in the food system could be improved to lower price levels or slow the rate of increase. Recommendations given are based on results of studies which indicate food prices reflect increase food industry cost.s. Government could assist in controlling price increases through 1) modifications of transportation regulations; 2) increased efficiency to reduce marketing costs; 3) increase consumer information and protection. Food industry may decrease cost through 1) computerized checkout system expansion; 2) reducing food loss; and 3) moving toward standardization of primary and secondary containers to package and transport food.

Food Price Inflation in the United States and Other Countries