According to BLS data, food inflation in 2020 was 3.4 percent over 2019. The general inflation rate measured by the consumer price index was 1.2 percent. Food inflation often runs ahead of the overall CPI and is more volatile than overall inflation, which is why the Federal Reserve doesn’t factor it in to interest rate decisions. However, based on commodity prices and economic recovery in 2021, we could be looking at another year of higher food inflation. There were a few interesting points in the BLS data. First, the food staples rose the most with COVID panic buying and supply disruptions impacting price. Pork, beef, chicken, eggs, and milk were all above the overall food inflation rate.
Interestingly, cheddar cheese was...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
