by Michael Snyder
The Economic Collapse Blog
Even though central banks all over the world have been raising interest rates in recent months, food prices just continue to go up. There are a couple of reasons why this is happening. First of all, demand for food is very inelastic. In other words, no matter how high or how low prices go, people are still going to need to eat. So even if the Federal Reserve sent interest rates into the stratosphere, people would still need to go the supermarket to get food for themselves and their families. Secondly, we are facing some severe long-term supply problems. As I have detailed in previous articles, food production is being significantly hindered in a number of different ways, and that isn’t going to change any time soon. There simply is not enough food to feed everyone on the planet, and supplies are only going to get tighter in the months and years ahead. No matter what central banks do, this is going to push food prices steadily higher.