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Ag Facts: Food Prices Less Volatile Than Fuel Prices

Rising fuel prices can raise questions about the implications for food prices. Motor fuel prices for the first eight months of 2012 were 3 percent higher than those from the same time in 2011, which in turn were 28 percent higher than 2010 prices. Food prices usually move in the same direction as fuel prices, often with a slight lag as fuel costs are incorporated into food prices. However, while the direction is often the same, the sizes of the price swings differ.
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