Increasing and More Volatile Food Prices and the Consumer

Abstract

This article focuses on the relationship between consumers and food prices and addresses two main issues: increases in food price levels and volatility caused by changes in consumption volumes and structure, and changes in consumption caused by increases in food price levels and volatility. It gives a brief discussion of some relevant theoretical and conceptual issues. Changes in food consumption are addressed within a broad discussion of the patterns and determinants of high and volatile food prices. It examines consumer responses and impacts in the context of high and volatile food prices with a focus on poor consumers in developing countries. This article concludes with a brief discussion of existing and desired policy responses to stabilize consumption through price policy, stocks, and trade, as well as mitigation of negative effects on the most vulnerable through subsidies and social protection.