Friday, April 1, 2011

Food Inflation

“Rising prices for food can cause all kinds of problems,” says Ralph. “I don't think the world is ready for a 15% reported inflation rate in China, for example."
The following chart from Goldman Sachs shows you what headline inflation rates would be if local food prices caught up with international food prices:

Ralph: “We could see alarmingly high inflation rates when the second-quarter numbers come out."

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