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There were real food supply issues in and around the 2022 timeframe (if you recall, some countries had even expressed worry about running out of food), which se
by randomdata 2y ago
There were real food supply issues in and around the 2022 timeframe (if you recall, some countries had even expressed worry about running out of food), which sent the wholesale price to the moon. Things are back to normal there now.
It’s not surprising that retail reacted to that, and not immediately. Markets can be slow. The end consumer seems to be always the slowest to react, so it is no doubt the residual effects of those events.
Inflation measures the change in value of the currency. This was a change in value of food - the threat of starvation saw people see food as being more valuable. What the parent meant is that it isn’t just inflation alone. Inflation is partially responsible, but not wholly so.
- cbanek 2y agoFor example, one of the food supply issues was the price of wheat after the invasion of Ukraine, which grows a lot of wheat. Futures shot through the roof.
- randomdata 2y agoWhich also prompted cutting ties with Russian fertilizer – a market that was already strained due to EU shutting down fertilizer plants in the year prior. Coupled with weather events that wiped out a large portion of the US crop the year before that, along with a dash of COVID-19, and it was the perfect storm. It is really quite amazing that it was as short-lived as it was (on the wholesale side, at least).