by Anura Guruge
on July 19, 2023
U.S. food prices, & with that U.S. core INFLATION, is bound to go up this Fall.
Think what this EXTREME WEATHER is doing to farming & crop production. I am surprised that we haven’t started seeing some price increases already. Some farms are scorched by the intense heat, others are under water. Either way it is not good for us consumers. FOOD PRICES HAVE TO GO UP. To think otherwise is to bury your head in the sand.
Then we have the never-ending Ukraine war & Russia’s latest ban on crop export. That too will hike up food prices.
So, those that think U.S. inflation is under control & on the way down are going to be in for a very rude awakening. Yes, it will take some time for these price increases to show up on inflation gauges such as ‘CPI’. It might take till nearly year end. Then we will AGAIN suddenly see a SPIKE in inflation & interest rates will AGAIN go up.
That is the thesis I am working on.
