New Policy Analysis Tool Measures Impact of Rising Food Prices

Global policymakers were faced with a stark reality when food prices rose for the eighth consecutive month in February. In addition to affecting global markets, such increases can have complex and widely varied impacts on agricultural markets at the country level. A new policy analysis tool from the Food Security Portal can help to estimate and analyze these domestic impacts.

The Supply-Demand Model of an Imported Commodity: Import Price tool uses a simple one-country model of supply and demand to measure the impact of changes in import prices, as well as other factors. At the country level, the market for an imported commodity can be affected not only by rising global prices, but also by changes in import tariffs, increases or decreases in domestic incomes, and shifts in supply. Having the ability to accurately estimate the impact of these factors can help governments institute appropriate policies to ensure both domestic and global food security.

Access the full line of policy analysis tools . These tools will help strengthen policymakers’ capacity to respond quickly and effectively to the dynamic global food security situation, ultimately leading to poverty reduction, agricultural growth, and economic development.