The flood of easy money from the U.S. Federal Reserve intended to prop up the economy in the face of COVID-19 should be inflationary. The Fed has tipped its hand by expressing a desire for inflation above its previous 2 percent cap. Food and energy are typically treated separately than core inflation since they are inherently more volatile. Nonetheless, inflation should be good for commodities since they concurrently store value.  Commodity futures have thus far been bearish with the inflation rate so far this year for unprocessed foodstuffs and feedstuffs averaging -6.7 percent. By contrast, the 20-year average is 3.2 percent for this category. The COVID-related pantry stockpiling drove the cost of finished consumer foods up 2.3 perc...

TAGS – North America, Macroeconomics