Why are food prices rising?

Food prices have been rising steadily in the past few months and the effects are being felt globally. As agricultural commodities such as wheat and dairy trade at record highs, some governments, such as Russia, are implementing price controls on selected types of bread, cheese, milk, eggs and vegetable oil. But why is food getting more expensive? What role do biofuels play and how has the weather affected crop yields this year? How does the cost of oil factor into the price of food? A really informative FT multimedia feature explains. Click here for link.

Housing downturn hits Ikea

A good example of the inter-relationship between markets and complementary goods in this article about Ikea, the Swedish furniture manufacturer. The housing downturn is important for our business and we feel it quite a lot," Anders Dahlvig, the chief executive, said at the World Retail Congress in Barcelona. "Our growth is going down slightly in the US, the UK and Germany. The downturn is affecting us quite a lot."

http://www.guardian.co.uk/business/2008/apr/09/retail.creditcrunch