Derivados del petroleo
Food has increased its prices, affecting people in many different ways.
2. What are the causes of inflation that are stated in the case?
It is caused because of the rise in the price of energy and the effect that they have on food. For example the increase in oil price, lead to an increase in the demand of ethanol. Consequently, corn prices rise because of the increase in the demand of corn to produce ethanol. If corn prices rise, other food that needs corn to be produced, increase. Another factor is the decline in the value of dollar, increasing the imports and the foreign demand for US agricultural output.
3. What is the relation between spending habits and income level?
Depending on the …ver más…
8. What is the impact of food inflation on the elderly?
Food inflation doesn’t make such a big impact on the elderly since they always eat at home and they consume less, so they spend less money.
9. What is food inflation then? How does it differ from core inflation? Food inflation is the general rise or change in the prices of food and it also includes energy prices, on the other hand, core inflation doesn’t take into account the food and energy