Thursday, December 17, 2020

"Why Albert Edwards Is Starting To Panic About Soaring Food Prices"

Albert doesm't panic.

Albert says things that make me panic.

From ZeroHedge:

Is it time to worry about food inflation?

The reason this has suddenly become a hot topic is because while overall inflation remains subdued (we will spare a discussion here of why the CPI is purposefully distorted to stay as low as possible - readers can catch up here, here and here), food inflation has been on a tear in recent months. In fact, it has gotten so high that earlier this week Goldman published a report looking at "The Recent Spike In Food Inflation", in which it noted that "in recent months, inflation has risen and surprised to the upside across a number of major EM economies (e.g. Turkey, South Africa, India, Brazil andRussia)." According to Goldman, one of the main drivers of these increases has been higher food inflation, which has coincided with a sharp increase in the price of some key agricultural commodities (e.g. grains, oils and soybeans)."

Yet despite admitting there is a clear food inflation problem, Goldman is quick to brush it off, making the following arguments: