Foodflation
You may not have noticed, but food prices are increasing. And don’t be surprised if they continue to do so in 2008. In fact, there was a 23% increase in food prices in the world over the past 18 months.
Though there is much talk of inflation in the US, which is a rise in the price of goods & services which causes purchasing power to fall, the current core inflation rate (which excludes food & energy) is 2.3% in the US, which is not that high. But food inflation is roughly double that, with cheese inflation at 4%, steak inflation at 6%, and bread inflation at 10%!
Beans in the teens! Futures of July 08 beans are traded at $13 for the first time, largely due to the droughts experienced throughout the US which will persist and cause detriment to grain crops. Better stock up now..
