Oil Price Shocks Drive Up Food Prices in Asian Countries
Energy prices, especially oil, have a big impact on food prices in Asian countries like Bangladesh, China, and India. When oil prices go up, food prices also rise. This connection is strongest in the long term, with oil prices explaining a big part of food price changes. Biofuel prices also affect food prices, but not as much. If advanced countries use more biofuel, it could lead to higher food prices globally, which might be bad for food security in some countries.