Inflation and food security: some emerging issues in developing countries

The rapid rise of cereal and other food prices in the current phase have provoked deep concern regarding food security in developing countries. Whilst a vast majority of people in developing countries are already suffering from widespread malnutrition, the rapid rise of prices of food items is likely to make these people more vulnerable. Most of the poor are net buyers of food items, and the impact of food price shocks on their livelihood are pronounced. Using Bangladesh as a case study of developing countries, this paper describes how soaring inflation has affected food security, it elicits the causes of the crisis, details the government responses, and summarises the lessons learned with regard to monetary policy and food security measures.