Abstract
World food prices surged strongly in recent years, with two waves of rising prices in 2007-08 and 2010-11. For food-importing countries affected at the same time by significant levels of undernourishment and malnutrition, sudden rises in the international price of food may have a strong impact on domestic prices and greatly affect access to food. Such is the case of two South American countries: Bolivia and Peru, which pursued quite different policies affecting the transmission of international commodity price changes into domestic consumer prices for major food items. This paper examines policies enacted in both countries at the macroeconomic and sectoral level, and the outcome in terms of domestic prices.
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