Report: Biofuel not cause of food price spike

A report recently published by the World Bank’s Development Prospects Group argues that biofuel production has had a much smaller impact on food price increases than originally thought, but that the use of commodities by investment funds may have been partially responsible for the 2007/08 price spike. According to the report, titled “Placing the 2006/08 Commodity Price Boon into Perspective,” a stronger link between energy and non-energy commodity prices is likely the dominant influence on development in commodity markets, especially food markets.