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The Government Says Inflation Is Under Control; But You And I Know That Prices Are Going Up...
Posted on 03/20/2007 18:51 PM | Link | Post Comment
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The bogus "no inflation" mantra that we keep hearing makes me sick. Ag commodities such as corn (you know, the ethanol craze) are driving food prices higher.
Going forward, I would think that Bio-ag companies like Monsanto (MON) will do very well. If ethanol is truly the holy grail for our energy issues, Monsanto will engineer their seeds to get greater yields out of an acre of land.
As you are well aware, the "core" inflation numbers always come with the disclaimer, "ex-food & energy". They must think we're stupid. Last week, the CPI rose 0.4% and PPI (ex-food & energy) rose the same amount.
Corn prices have risen about 70% in the past six months. I believe there is a correction on the horizon, but we cannot ignore that higher prices will be passed on to consumers.
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