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Source: Janie Gabbett, MEATINGPLACE.COM, 6/16/08
As a result of the sharp and sustained increase in input costs, food inflation could rise by an average of 9 percent annually between 2008 and 2012 as the rising costs are passed on to consumers, according to a new study.
Advanced Economic Solutions, in a study commissioned by the Grocery Manufacturers Association, said rising agricultural commodity prices are contributing to the highest rates of food inflation in decades.
While global economic expansion, rising energy prices and a weak dollar continue to drive higher commodity prices, study author Bill Lapp said the rapid expansion in the use of corn to produce ethanol is currently the most significant factor driving corn and other agricultural commodity prices to record levels.
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