Agricultural Economics
08/01/2012 | | Beef prices, CPI, Corn, Inflation, Soybeans, agricultural economics, drought of '12, food inflation
Despite crippling drought, US food prices will rise little as only 15% of each food dollar is attributable to farm products. Thus, even a 100% rise in corn prices would lift the CPI by 1.5%. And if this drought is as bad as 1988, which cost $80 billion, GDP will fall by just 0.50%. In the short-run beef prices will fall as herds are culled due to high feed costs.