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World food commodities prices increased 130 percent from January 2002 to July 2008. Individual agricultural commodities show even more pronounced increases: corn, wheat, rice and soybeans rose by 190, 162, 318 and 246 percent, respectively. Since July, food commodities prices began to fall....
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We apply a standard tax-and-benefit-incidence analysis to estimate the impact on inequality and poverty of direct taxes …, indirect taxes and subsidies, and social spending (cash and food transfers and in-kind transfers in education and health). The … the country. When in-kind transfers in education and health are added, however, the bottom six deciles are net recipients …
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Rising food prices cause considerable policy dilemmas for developing country governments. Letting domestic prices adjust to reflect the full change in international prices generates inflationary pressures and causes severe hardship for poor households lacking access to social safety nets....
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