Corn may not be the cause of higher food prices

Blog Based on a report by John M. Urbanchuk,[ Director, LECG LLC (wispolitics.com) ]

Corn based ethanol may not be to blame for the higher prices we now have to pay at the grocery store. Critics of the alternative fuel production process fail to point out that corn prices are only one of many factors that determine the CPI for food, and in fact, directly affect a small share of retail food prices. A study that examined and compared the impact on consumer food prices resulting from increases in petroleum and corn prices resulted in the determination that higher oil prices, rather than rising corn prices is responsible for higher food prices. The study further states that increases in energy prices for example exert a greater impact on food prices than does the price of corn and provides examples of such.