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Debate Over Food Costs Not Just U.S. Issue

Germany's ag minister answers to his country's questions about inflation too.
Compiled by staff 
Published: Dec 27, 2007

While U.S. farmers may feel put upon these days for the "rising price of food" it's not just a local issue anymore. Around the world, rising commodity prices and subsequent boosts in retail costs for food have a lot of groups up in arms.

Dow Jones reports that Germany's Agriculture Ministry has issued a statement that rising food costs aren't a major contributor to overall cost-of-living increases in that country. According to a ministry statement, food costs have gone up at a slower rate than overall consumer costs.

The ag ministry notes that consumer prices rose an average 2% a year between 1991 and 2006. During this period, food costs have only gone up 0.9% annually for the country. The statement also notes that from December 2006 through November 2007, consumer prices were up 2% while food prices rose less than 0.3%.

An increase in general inflation in Germany has been blamed in part due to rising food costs, but these statistics deny that claim.



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