Food inflation is here and it’s here to stay. We can see it getting worse every time we buy groceries. Basic food commodities like wheat, corn, soybeans, and rice have been skyrocketing since July, 2010 to record highs. These sustained price increases are only expected to continue as food production shortfalls really begin to take their toll this year and beyond.
This summer Russia banned exports of wheat to ensure their nation’s supply, which sparked complaints of protectionism. The U.S. agriculture community is already talking about rationing corn over ethanol mandates versus supply concerns. We’ve seen nothing yet in terms of food protectionism.
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