According to a recent study by the World Bank, crude oil prices bear the lion’s share of responsibility for most of past decade’s jump in food prices. Oil prices, not stocks to-use, exchange rates, interest rates or income, were the most important driver of food prices since 2004—a time period where dramatic and devastating spikes in global food prices occurred, and one that also coincides with record profits for the oil industry. Following the release of this new study, Growth Energy CEO Tom Buis said:
“Not only has the oil industry been responsible for the sky-rocketing gas prices each time you fill up your car, now it turns out they are responsible for the price increases you face at the grocery store. While they enjoy record profits, populations around the world suffer at their expense and struggle to pay for the basic staples of life.
“The World Bank found that crude oil is responsible for more than half of the increase in food prices. Couple that with the nearly 100 percent increase in domestic gas prices over the same time frame, and the cost of oil has truly affected the well-being of all Americans in a very expensive way.”
Source: Growth Energy