Food inflation

Food inflation is a type of inflation that affects food items. It often the most noticeable form of inflation, and tends to impact lower income individuals the hardest. Common causes include poor harvest, war, increasing energy prices, and food being unharvested. Food inflation almost always leads to currency inflation, as food is a requirement for survival.

The most common policy to counter-measure to food inflation is subsidies and price controls. During times of crisis, such as war or famine governments often implement a system of food rationing. Food stamps, or a food aid to lower income individuals. Maintaining a varied agricultural industry can help midigate the effects of food inflation on a single crop. In the case of artificial food inflation laws or litigation can be used against corporations that practice predatory pricing, monopoly pricing or price gouging. Lower income individuals have lower savings and tend to spend more of their income on basic necessities, resulting in food inflation disproportionally effecting those who are lower income.