This chart reflects the sharp escalation in world food and crude oil prices which occurred in 1973. Between 1963 and the fourth quarter of 1972 world food and crude oil prices remained fairly stable. There was even a decline in crude oil prices in 1971. Beginning in the first quarter of 1973, both indexes began to take off. Higher food prices were the result of poor crops in the U.S.S.R., Australia, Argentina and India. There was also a reduced peanut crop in Africa, failure of the Peruvian anchovy catch and a rice shortfall throughout Asia. The United States sold the Soviet Union 18 million tons of grain out of a total purchase by the U.S.S.R. of 28 million tons.

In contrast to food prices, world prices in petroleum escalated because of man-made causes. By joint action the OPEC nations increased crude prices by between 300 and 400 percent within 1 year. The average price for Persian Gulf crude increased from $2.59 in January, 1973 to $11.65 in January, 1974.