World Perspectives

Food Inflation

U.S. gasoline prices are up 60 percent June to June and deservedly receive more than food price inflation. Year to date, consumer food inflation is at 6.7 percent, though USDA expects it to be closer to 8.5 to 9.5 percent. The meat category is a main component pulling it higher with consumer inflation at 12.14 percent. This contrasts with a 20-year average of all consumer food advancing at a 2.4 percent annual rate. USDA expects consumer food inflation to cool dramatically in 2023 to 2.5 to 3.5 percent, closer to its historical average.  At the producer level, cattle prices in 2022 will advance 12.5 to 15.5 percent, versus pork at -1.5 to 1.5 percent. However, the real price spike is occurring in dairy and poultry. To manage inflation...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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