Food Security, Commodity Price Volatility, and the Poor

Abstract

The volatility of food prices has increased in the past decade. It causes economic costs and human suffering among the poor. In this chapter, these costs are reviewed and assessed. An attempt is made to explain the food price volatility with traditional factors, that is, supply shocks, and with new market fundamentals, that is, energy market and financial crises linkages, and speculation. In conclusion, policy recommendations for addressing food price volatility at global level and related institutional arrangements are made.