Sunday, April 25, 2021

The Grocery Price Shock That Is Coming to a Store Near You

If you thought the price increases you have seen in the grocery store have been strong, buckle your seat belt, you haven't seen anything yet.

This week, the Bloomberg Agriculture Spot Index — which tracks key farm products — surged the most in almost nine years, driven by a rally in crop futures. With global food prices already at the highest since mid-2014, this latest jump is being closely watched because staple crops are a ubiquitous influence on grocery shelves — from bread and pizza dough to meat and even soda, reports Bloomberg.

Bloomberg continues:

Soaring raw material prices have broad repercussions for households and businesses, and threaten a world economy trying to recover from the damage of the coronavirus pandemic. They help fuel food inflation, bringing more pain for families that are already grappling with financial pressure from the loss of jobs or incomes. For central banks, a spike in prices at a time of weak growth creates an unwelcome policy choice and could limit their ability to loosen policy.

It is going to get real very soon. 

Hug your gold coins.



  1. I'm hoping the silver to gold ratio gets balanced back to historical levels somewhere in to 20:1 range.

  2. Just as you think all inflationary hell is going to break loose, also consider the reverse, which is also part of the age-old business cycle. The reverse is wholesale (pun intended) deflation that results in a dramatic drop in price of just about everything, and then results in wholesale (pun intended again) shortages for people who can't afford to buy even when the price is almost zero -- sort of like that brief moment a few months ago when the price of a barrel of oil went negative. Only deflation will last and last and last until the next part of the cycle kicks in, as it ultimately will. Giggle.

    1. At the current point in time, there is zero chance of deflation.

    2. Let's see how it plays out. There is ALWAYS a chance of anything.

    3. @Lucy

      The wisest thing Keynes said was that markets can remain irrational longer than you can remain solvent.

    4. Great quote! I had not heard it before, but I like it. Thanks for sharing.

  3. That 50 pounds of sugar, pasta, rice and freeze dried everything along with condiments which I had squirreled away....may come in handy soon!