Sharon Alfonsi

ABC Ignores How Biofuel Mandate Contributes to Inflation

By Jeff Poor | February 21, 2008 - 16:44

The eco-love affair Washington has with biofuels is starting to take a toll on the fragile U.S. economy. It's a shame no one in the media have that connection.

"World News with Charles Gibson" explained on February 20 that biofuels are driving up food prices, which is driving up inflation. The Consumer Price Index (CPI), a key inflation reading, rose 0.4 percent in January according to the Labor Department, matching December's rise.

"Blame it on the price of wheat," said ABC correspondent Sharon Alfonsi. "Demand for alternative energy has farmers planting less wheat and more corn - the key ingredient of ethanol. Add the growing appetite for wheat from developing countries and the supply is strained.