Agflation
In economics, agflation is a term believed to have originated during the worldwide Food Crisis of 2008. The term is a portmanteau word formed by combining the words "agriculture" and "inflation," and describes a general rise in prices that is caused by rising production costs for agricultural goods. Agflation is a type of cost-push inflation, or increase in the price level that is caused by an exogenous supply shock (sudden or dramatic reduction in the production capacity of producers or firms).[1]
In 2022, agflation skyrocketed to 25.3%, three times the 8.5% rise in the Consumer Price Index for food.[2] This places farmers at enormous hardship, as their rise in costs far outstrips their rise in revenue.
Agflation can be caused by the War on farmers.
References
- ↑ https://www.economist.com/finance/displaystory.cfm?story_id=9707029
- ↑ https://www.msn.com/en-gb/money/other/farming-sector-e2-80-99s-agflation-costs-are-dwarfing-inflation/ar-AAZ07NB?fromMaestro=true
