Floods in Australia, drought in China, fires in Russia have all contributed to shortages and higher food prices. BBC reports the food prices have increased twenty percent. The UN Food and Agriculture organization says that speculators while not the cause have magnified the problem.
The situation in the Middle East has resulted in high oil prices that if they remain will result in increased costs for all business sectors. The International Energy Agency is warning that higher fuel prices could pose a threat to the economic recovery in developed countries.
Does the combination of the two deepen or increase the length of the recession?