Agflation, a term coined in the late first decade of the 21st century, describes generalised inflation

Inflation

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...

 led by rises in Agricultural commodity

Commodity

In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....

 prices. In the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, agricultural prices are not generally factored into core inflation

Core inflation

Core inflation is a measure of inflation which excludes certain items that face volatile price movements, notably food and energy.The preferred measure by the Federal Reserve of core inflation in the United States is the core Personal consumption expenditures price index...

 figures. The term describes a situation in which "external" (i.e. Agricultural) price rises drive up core inflation rates.

It has been claimed that the term was invented by analysts at Merrill Lynch

Merrill Lynch

Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...

 in early 2007.

See also

• 2007-2008 world food price rises
• Biflation
  Biflation
  Biflation is a state of the economy where the processes of inflation and deflation occur simultaneously. The term was first introduced by Dr. F. Osborne Brown, a Senior Financial Analyst for the Phoenix Investment Group...
  
  
• De-growth
  De-growth
  Degrowth is a political, economic, and social movement based on environmentalist, anti-consumerist and anti-capitalist ideas...
  
  
• Inflation
  Inflation
  In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
  
  
• Hyperinflation
  Hyperinflation
  In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
  
  
• Deflation
• Biofuels
• Stagflation
  Stagflation
  In economics, stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high...
  
  

External links

• Reuters wire stories: Global Coverage Agflation.
• IPS Inter Press Service article: What Is Really Causing Agflation?