Friday Morning Coffee 149: Food Inflation

300421 Friday Morning Coffee

Friday Morning Coffee 149: Food Inflation

The inflation theme is everywhere in the financial press. However, central banks remain pretty silent on the matter and downplay the risks. On the all-important inflation question the statement from the Fed this Wednesday states “inflation has risen, largely reflecting transitory factors.”. The Fed appears to ignore the surge in raw materials like industrial metals, agricultural products and lumber and the soaring transport costs.

 

In this morning coffee, we focus on agricultural prices. The Bloomberg Agriculture Spot Index, capturing the price movements of key agricultural products like corn, wheat, soybeans, and vegetable oils, has reached its highest level in 8 years.

(See attached pdf)