How much have domestic food prices increased in the new era of higher food prices?

Abstract

Analysis of domestic price data (adjusted for inflation) from a large range of low- and middle-income countries shows that domestic staple food prices were higher in 2013 than they were in the first half of 2007: consumption-weighted real domestic rice, wheat and maize price indices increased by 19, 19 and 29 percent, respectively. The domestic price indices broadly follow world price movements, but domestic price changes are attenuated to an important extent due to government policies, transport costs, changes in exchange rates and other factors. While world price changes thus overstate the impact on food security of farmers and consumers, the observed increases in domestic prices are still substantial for the poor. Domestic price changes have varied widely across countries, and the changes in any particular country are not necessarily due to changes in world market prices.