Thursday, May 31, 2007
By the year end it could be the biggest annual increase since 1980
Fears over food price inflation
Retail food prices are heading for their biggest annual increase in as much as 30 years, raising fears that the world faces an unprecedented period of food price inflation.
Posted by sold 2 rent 1 @ 09:18 AM (178 views)
25 thoughts on “By the year end it could be the biggest annual increase since 1980”
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Orwell says:
Thanks for supporting Tesco and Sainsbury Gordon and the boys!
george monsoon says:
Very brief article, but it was bound to happen. 6pc interest rates by august anyone?
Aceparts says:
This is great news for me and others like me as I’ve got cupboards full of food. I’ll be rich. Not good for those who haven’t done their shopping yet. Buy now!
sovietuk says:
The era of low inflation, yes really. When did printing money ever make an economy better? It’s just the same old cycle, 8 – 9% interest rates in the next five years easily a possibility.
sold 2 rent 1 says:
Question for JU.
Where did IR peak in Japan in the 1989-1990 bubble
Wage Slave says:
What’s the betting that food gets removed from the CPI ‘basket of goods’ ? We can all eat ipods instead !
mrmickey says:
The idea that we were going to turn all our land over to the production of chip fat to run our Toyota Prius was always laughable. On a brighter note my potatoes our coming on in the back garden.
Wage Slave says:
Does anyone know why when I add a comment it takes a couple of hours to appear ?
Is there any way of making it quicker ?
Rickyb says:
No need to worry about food prices increasing. We’ll all be rich just as soon the Bank of England decide to convert to using the leaf as legal tender.
holding out says:
S2R1
I recently stumbled over this rather painful to read paper regarding the japanese bubble.
If you look at page 26 that gives you the Japanese interest rate graph over the 70s 80s and 90s. The interesting thing is that rates didn’t go that low for that long to inflate the bubble.
holding out says:
That didn’t work too well.
holding out says:
http://www.stanford.edu/~mckinnon/papers/McKinnonGoyal.pdf
dohousescrashinthewoods says:
– does this help?
dohousescrashinthewoods says:
Ah, that’s better.
Interesting comment about potatoes, mrmickey.
My wife started an allotment a year ago and it is now producing a decent stock of food (and 10x tastier than Tescos).
If food prices did increase sharply, we could probably increase reliance on it and so reduce outgouings on food (no way self-sufficient).
Clever lass she is. Saw this one coming.
george monsoon says:
All this talk about self sufficient.. I have a lovely crop of raspberries coming on, rhubarb, blackcurrants and strawberries, and some strange himalayan hemp hidden away in the nettles.
sold 2 rent 1 says:
Thanks for that HO,
The graphs on pages 25-28 are good
I see that Japanese money supply grew at 10% a year until 1990 then fell off a cliff
The IR went from 3.5% to 8% before tumbling again.
I see “Merryn on Money” is still pushing Japan as a contrarian place to invest.
I still think Japan has yet to hit the bottom
Valuations have come down as dramatically as share prices. The Nikkei is now valued at 23 times earnings, compared with about 70 times at the 1989 peak.
23 is still high and secular bears normally end with PE ratios of around 7.
Japan’s economy is based on exports. If the rest of the world tanks then so will Japan again.
I am not sure of the exact figures but the debts levels still remain high
Remember the k-winter in the 1930s and 1940s took 3 recessions and 20 years to reach the bottom of the cycle.
Back to UK interest rates.
Will they reach the 8% that Japan had at the top of its bubble????
I still think a US recession and stocks crash will ensure that UK rates don’t go that high.
mrmickey says:
At least if you grow your own you know where it’s come from, most people have no idea where their food comes from or what’s been done to it. When I was a nipper milk used to go off after a few days in the fridge now it lasts ages what have they put in it to make it last that long and what happened to the cream on the top, pinched by some money grubbing politician no doubt.
paul says:
mrmickey.
Supply chain shortening. In the good old days the milk was stored in a tepid warehouse for a couple of days where the full fat milked congealed before being delivered to your doorstep.
Metaphorically speaking the EU probably gets the cream on top of the milk. Or bluetits.
paul says:
george monsoon, your IP address has been logged and the thought police are on their way to interview you about your nettles.
I suggest following Fela Kuti’s example by eating it quickly before they arrive. One of Fela Kuti’s best (and best known) songs is called “Expensive S**t”. Now you know why.
george monsoon says:
Paul, I think its just rosebay willow herb.. but I will try smoking it anyway to see what happens.
I like the thought of growing my own fruit and veg.. The way things are going, I will end up with a few kilo’s of raspberries, so I might try my hand at making Jam.
talking rot says:
George
Try keeping a few hens as well. They are great at clearly ground covered by grass (Grass?) and weeds. They can do a good sized area in 2 – 3 months and fertilise it at the same time; you get eggs while they do it too (unless you buy a meat variety like a Cobb). Eggs are eggs but the goodness of the egg is deetermined by what the hen eats: Poor diet means the nutrional value of the egg is lower. My hens used to peck around my hoe and spade, eating centipedes, milipedes, leather jackets, snails etc. I prefer home grown chicken meat as it has a better texture and my friends say better flavour too but culling, plucking, gutting and dressing is not for everyone. Always get hens too – they don’t crow. Sorry if you knew that already but my neighbours sent threatening letter, via their solicitors, telling me to get rid of the hens because of the crowing in the morning! I was lost for words!
My landlord told me to get rid of them until I pointed out to him that if I did, we would leave and he’d be looking for new occupants. Funny old thing, he hasn’t been back since.
Pr says:
I buy my vegetables online and get a box of veg and fruit each week, all organic, much cheaper than non-organic from the supermarket, direct from the farm, don’t have to pay for stupid packaging and shrink wrap or bother to pay to drive to the supermarket with all that hassle. I eat like a King!
fahrenheit451 says:
We’re looking at the 2nd season’s growth of Rubarb, no it’s not a pantomime joke, it’s the real thing, oh no, no not Coke, no not that white powdery stuff that goes up u’re nose .. Rubarb, … with custard, no not custard pies, custard, the yellow runny stuff that goes on Rubarb Crumble, oh crumbs, crickey got to get a grip here. Now where’s the sugar … desends into a puddle of tears, crawls off stage-right …
george monsoon says:
Ok, Fahrenheit451, we may have drifted away from the subject, but if food prices do rise in the near future, everyone will be growing a few spuds..!!
fahrenheit451 says:
It’s OK George, we all need to chill out. Just a knee jerk reaction and I’m serious about my Rubarb, we have eaten the first harvest and now looking forward to the 2nd after all this rain.
Life’s too short to worry about everything. If you like I’ll write you a sketch or short play about the impending doom. Er … could even hijack some characters from this blog, it might give it an sharper edge, but would have to give them pseudonyms or somebody will call libel etc.