September 10, 2015

NOTHING COSTS MORE THAN IT USED TO:

Falling Food Prices, Rising Deflation Risk (Mark Gilbert, 9/10/15, Bloomberg View)

The 2 percent inflation target that the world's most important central banks regard as the Goldilocks scenario for consumer prices -- not too hot, not too cold -- looks less and less likely to be achieved any time soon in many countries. And with crude oil languishing at about $45 a barrel amid a glut of supply, the biggest decline in food prices in almost seven years suggests the risk of deflation is growing.

The United Nations compiles an index of 73 food prices. That index has fallen for 10 consecutive months, and figures released Thursday show the measure dropped by 5.2 percent last month. Food prices have now declined 35 percent from their peak in February 2011...

Of course, if we didn't have enough food it would cost more, which illustrates why this is a ridiculous "problem."
Posted by at September 10, 2015 6:46 PM
  

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