Feeble Food

soybeansTo the bewilderment of many, economists ignore food and energy prices when considering inflation. Here’s why. Two years ago soybeans were $17.94/bushel because a drought sent prices to all-time highs. Today, due to outstanding weather, front-month soybeans are at $9.90/bushel. Similarly, today gasoline is 20% cheaper than in June! These volatile prices tell us about weather conditions and possible supply disruptions, neither of which give insight into future inflation trends.

Share This Post
Facebook Twitter Email

Speak Your Mind