Are higher food prices here to stay?

A man stands by a stand at Ali Mellah market in Algiers on July 27, 2011. Faced with crumbling regimes across the Arab world, Algeria has dramatically boosted its grain imports to contain social unrest ahead of Ramadan, when food prices traditionally shoot up. (Photo: AAP)

Author: Ron Duncan, ANU

Does the recent upturn in grain prices, or more generally food prices, signal a permanent reversal of the long-term downward trend in the real prices of foodstuffs?

This question seems to underlie most comments on the recent food price increases — and, incidentally, commentary on the 2006–08 upturn in primary commodity prices. Read more…