Inflation, Food, and Energy

The Silent Shock

Abstract

Two important developments have taken place in the world economy in recent years. First, a sustained increase in commodity prices (minerals, fuels, food, etc.) and, second, inflation in goods and services has remained under control. All these elements are producing significant distributive pressures in many economies, Chile’s among them. Indeed, one need only note that inflation has been kept in check in a context in which many basic prices (corn, wheat, rice, kerosene, gasoline, and others) are rising to realize that someone is absorbing these increases. Continue reading...