Food Price Shock Cometh
by Tyler Durden
Today, some Fed member, arguably of a Dovish persuasion, made headlines by saying that inflation was tame in all but food and energy. We are confident he is right. So for all those readers who are lucky enough to not have to eat, fill up with gas, or heat their homes, the following video from the NIA on suddenly surging prices in virtually every vertical, is probably irrelevant. All others may be advised to watch it…
And just to make sure the point of the coming price crunch is not lost, the FT has just come out with an article titled, not too subtly, “World moves closer to food price shock”
The world has moved a step closer to a food price shock after the US government surprised traders by cutting stock forecasts for key crops, sending corn and soyabean prices to their highest level in 30 months.
The price jump comes after the UN’s Food and Agriculture Organisation warned last week that the world could see repetition of the 2008 food crisis if prices rose further. The trend is becoming a major concern in developing countries.