First-generation biofuels like ethanol made from corn and biodiesel from rapeseed have effects on food prices. However, new evidence from the U.S. Department of Agriculture (USDA) suggests high oil prices play a much larger role in this trend. The situation is far more complex than some want to believe, because some biofuels even succeed in pushing inflation down. Researchers point at the situation in Brazil: there inflation indices have dropped because of record ethanol output and record low prices for the biofuel. Competitive biofuels bring down costs for all the economic sectors that would otherwise have to rely exclusively on very expensive oil products. More . . .