Understanding the Impact of High Food Prices in Latin America.

The article examines the impact of food price changes the distributional affect within the Latin American countries of Guatemala, Honduras, Nicaragua and Peru between 2006 and 2008. The price transmission mechanism from world markets to local markets for various types of countries is analyzed. The effect of changes in food prices on household welfare and consumption in urban and rural areas is examined. The authors conclude that almost all poor households become even poorer due to high food prices.