Falling Food Prices Ease Upward Pressure on Inflation

[applegrove]

Falling Food Prices Ease Upward Pressure on Inflation

July 31, 2022 at 6:00 am EDT By Taegan Goddard 16 Comments

https://politicalwire.com/2022/07/31/falling-food-prices-ease-upward-pressure-on-inflation/

"SNIP.......

“Falling prices for commodities such as wheat or corn are set to slow consumer food price increases, easing pressure on a major driver of global inflation,” the Wall Street Journal reports.

“But economists warn it is too soon to declare victory. Agricultural markets remain volatile and the continuing war in Ukraine, combined with unusually hot and dry weather in Europe and parts of the U.S., could bring new disruptions to food supplies.”

....SNIP"

[ClimateHawk]

1. Gas prices are falling fast now

In my area they are down 20 cents since yesterday.

[doc03]

5. I filled up today for $3.59 a gallon. Last week a local Sunoco station was selling

93 octane gas at the same price as regular 87 octane.

[FloridaBlues]

2. I think the next report on inflation for July will see a slight improvement

Due to falling gas prices. Any relief is good news. The question will be how local and cable news report on it.

[madinmaryland]

3. Yea. "Crickets" to your last sentence. 🤬

[robodruid1]

4. hay up 25% this past year.

I spent 3K on it last year. Don't know how much more it will be yet.

[ProfessorGAC]

6. Dumb

Food prices are falling as top line energy prices fall.
Agribusiness sees lower fuel cost, shipping costs less, hence food prices stabilize or fall.
So, the actual lever is energy, not food.
Second reason this is dumb is that falling food & energy prices aren't merely exerting less upward pressure, but rather exert downward inflationary pressure.
But, economists that report through the mass media hate painting a pretty picture.
This is still painting a pessimistic picture. That's the 3rd reason why it's dumb.

[Meowmee]

7. I don't see any falling food prices here

Food and practically everything else I buy is still going up where I shop, some items every 3-5 weeks! Gas has gone down a bit but still way too high. Fortunately I hardly drive at all now. The heating oil price dropped a bit since we locked in a price but it is still about $2 higher.