Food Costs Could Crimp Global Growth

The global market's recovery from the Asia-led swoon faces a challenge that's not on most investors' radar screens -- but is on their dinner plates.

Over the past year, the price of corn has doubled, grain prices have surged 70%, soybean prices have risen 27%, and inflation in confectionary materials is running at a 12-year high, up nearly 10%. In addition, the price of animal feed has gone up by 18%, and after falling most of last year, fertilizer has inched back up 5% in the past three months.

The massive price surges have resulted in the cost of global finished consumer foods rising 10% in the last year and baked goods gaining in nine out the past 10 months. These latent inflationary pressures may be more significant than many realize, some say. ...