[ringsarcle]

Will rising food prices derail the global recovery?

http://curiouscapitalist.blogs.time....-the-recovery/

There are two schools of thought mentioned: 1) that rising food prices will mean people have less money to spend and so it will harm the economy. 2) People will substitute expensive stuff for cheaper stuff, eat out less often, and as a result actually have more money to spend on goods. Two sounds counter intuitive, and it is probably wrong for poor countries but may be right for rich countries where food costs are a small part of the total budget, but there is another silver lining. The countries with the highest food price increases have been China and India both of which may have to raise rates to reign in inflation. The US still isn't experiencing inflation so as China & India's currencies go up the price of their exports will go up and that may mean more American made goods get sold thus helping America's economic recovery.