Devastating Drought To Hurt Farmers, But Consumer Inflation Should Be Tame |
| August 15, 2012 | August 2012 Bond Updates |
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In the context of what a federal agency called the worst drought since the 1950's, consumer inflation surprised to the downside by coming in flat for July, while input costs (PPI) actually fell 0.3%. With wheat, corn, and soybean prices going haywire, many fear a new phase of rampant food inflation, but analysts at Barclays suggest it will be more moderate than expected, feeding through to consumers gradually and with a relatively long lag. |
| View more at: http://www.forbes.com/sites/afontevecchia/2012/08/15/devastating-drought-to-hurt-farmers-but-consumer-inflation-should-be-tame/ |
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