- "The impact [of rising food costs] won’t be shared equally, with U.S. households spending 6 percent of their total expenditures on food, compared with 35 percent in India and 45 percent in Kenya…"
That’s from a Bloomberg News report on global crop inventories for July. When food prices rise, the poor become even poorer, because they have little or no disposable income to act as a buffer against the price swings.
Or think of it inversely: Members of the upper middle class can probably still afford a fancy tasting menu if prices rise by 25%, but they certainly won’t starve if they can’t.
The Bloomberg report goes on:
- "An index of 55 food items tracked by the United Nations’ Food & Agriculture Organization jumped 6.2 percent in July, the biggest increase since November 2009, the Rome-based agency reported today, less than two years after record prices pushed 44 million people into extreme poverty and contributed to uprisings in North Africa and the Middle East…Global food prices measured by the UN are still 10 percent below the record reached in February 2011.”