The good news is that globally, food prices dropped to a six-year low in the month of July. The bad news, of course, is that the price of maize rose. Bad news, that is, if you happen to be a maize-importing country like us, especially one with a weak currency, like ours. And moreso if maize happens to be your staple diet, like …. you get the picture. This according to the United Nations Food and Agriculture Organisation's food price index, which tracks the prices on global markets of cereals, meat, dairy products, vegetable oils and sugar. This time around, it was dairy and oils which were bringing the prices down. What does this mean for us? Higher maize prices traditionally have an upstream effect on the prices of meat and poultry, which as you know are made from a sort of recycled maize.
Comment: “Upstream effect”, indeed. What are we – economists?