Meanwhile, unlike the Fed's and Ben Bernanke's message to us that deflation is a more a worry than inflation is at this time, well, prices are going up and they seem to be doing so quite rapidly.
Chatter is getting louder that the rising the oil prices will undermine the recovery. And, food price?
Crap, why do I have to read these kind of depressing news and analysis! :)Strained by rising demand and battered by bad weather, the global food supply chain is stretched to the limit, sending prices soaring and sparking concerns about a repeat of food riots last seen three years ago.Signs of the strain can be found from Australia to Argentina, Canada to Russia.
Food prices were on the up and up when I was in India. Vegetables were becoming way expensive, and onions were selling at prices comparable to the US rates--mere currency exchange, and prices had gotten worse if we looked at in PPP terms. Overall inflation itself is high in India, and food inflation is even higher. If the monsoon fails this coming season, India could end up in a whole lot of trouble.