By Andrew Butter This is a chart of oil prices (Nominal-Brent-30 Day Moving Average) superimposed on the FAO Food Price Index (Nominal) as of April 2011. Three points: Given that energy (mainly oil) accounts for 30% of the cost of food, it’s not surprising that when oil prices went up by a factor of about five since the average in 1990 to 2000, food prices about doubled (5/3 = 1.67…plus whatever). Â
In spite of the dire predictions, the world probably isn’t coming to an end…just yet. Â
The peak in food prices in 2008 slightly preceded the peak in oil prices (by…
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