This effect tends to be much greater for countries that are 1) large net importers of food, and 2) where households spend a greater percentage of their income on food (meaning that they have a much larger weighting of food in their CPI basket). The chart shows the impact of rising food prices on CPI inflation in various developed and emerging economies. The impact of rapidly rising food prices on CPI inflation is substantially larger in emerging market economies (red dots) than advanced economies (black dots).
Countries like Nigeria and Bangladesh, with food weighting in the CPI basket of 64 percent and 58 percent, respectively, see a higher inflation risk. By comparison, more advanced economies that have food weighting in the CPI basket around 10-20 percent (like the US or Denmark). Notably, this isn't too far off of what happened in the real world during the financial crisis.
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