In Pakistan, the prohibitive price of tea became an election issue; the Chinese Communist Party's politburo frets about how long it may be before its poor can afford to eat pork again; Mexican housewives have rioted to protest against the shortage of affordable tortilla; Swaziland is facing famine, even as it exports cassava to feed the rich world's hunger for biofuel.

Rising agricultural inflation, or "agflation", is a global phenomenon that touches everyone, and almost every day it seems to intensify. This week, the price of prime spring wheat rose by 25 per cent on the American exchanges, while Russia and Kazakhstan announced fresh curbs on exports to protect domestic supplies.
—Sean O'Grady, "A recipe for inflation," The Independent, February 27, 2008

What is going on? It's inflation, with a twist.

"What we've got is 'agflation,' because it's mostly the cost of agricultural products that is going up," said Mark Perry, professor of finance and business economics at the University of Michigan-Flint.
—Sally York, "'Agflation' busts budgets," Flint Journal, March 27, 2008

Inflation is emerging as a threat to central banks around the world, but some investors are noticing a stock-picking theme in the gathering clouds: Buy food companies and watch their profits and share prices soar.

Merrill Lynch has already pegged the theme as a winner, since food companies can pass along the rising input costs, or "agflation," to consumers.

"Agflation is bad news for the consumer, already under pressure from higher energy prices," said Jose Rasco, an investment strategist at Merrill Lynch, in a recent note. "For the food companies, however, it could be good news as many companies have been able to pass along those higher costs to the end user."
—David Berman, "How food firms can benefit...pass it on," National Post, May 2, 2007