The environmental group Food and Water Watch has released a report entitled, "Corn Prices Do Not Drive Grocery Inflation."
According to the report, the price of corn has trended downward since 1980 and during times that farmgate corn prices increased there was little correlation with retail food prices. In fact, many times as corn prices rose, retail food prices would drop.
Although the group says the rise in the price of corn is partially because of increased ethanol production, ethanol is not the reason food processors are raising grocery prices.
Many experts say record energy prices, increasing global demand for meat and dairy products and poor growing conditions like in the wheat-producing areas of Australia have a greater impact on the price of food than corn prices.
To read the full Food and Watch report, click HERE.