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Akan datang: food inflation

In Commodities, Economy, Financial competency on 04/01/2021 at 7:10 am

Remember you heard it first here that food prices will be going up as we recovery from a recession

Food prices have surged in recent months. The UN’s Food and Agriculture Organisation reported a 6.5% increase in its food index in the 12 months to November. This was the largest monthly increase since July 2012. Cereal prices were almost 20% up on a year ago because of poor harvests and stockpiling because of the pandemic. Rice is in short supply due to poor harvests, stockpiling and bottlenecks.

FYI in Cynical Historian: Our very own Exodus story. From the “Land of milk and honey” to the Wilderness of the desert: Workers’ Paradise no more: Devan Nair at work in the 1960s.

  1. This phenomenon has been noted since Q3 2020.

    Basic materials & base metals have also recovered strongly to above pre-pandemic levels.

    E.g. While gold returned 22% in 2020, the humble rusty lump of iron ore returned 74%. Maybe it’s the Game Of Thrones effect — Winter Is Coming!!!!

    You don’t hear people saying they’re diversifying their portfolio into iron! LOL!

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