Can central banks hide inflation any longer?
*The Economist, August 25, 2007:
The Agonies of Agflation
"Sharing pain is usually deemed a good thing. So advocates of dishing out agony will be gladdened that the wallet-crunching pangs of car drivers filling up with petrol are now equalled by the wince-inducing stabs felt by shoppers piling up their supermarket trolleys. As oil prices stay high, wheat prices hit an all-time peak of over $7.50 a bushel for December delivery at the end of trading in Chicago on Thursday August 23rd.
The soaring prices of bushels and barrels are not unconnected. The cost of agricultural commodities, just like oil and metals, has gone up sharply over the past couple of years. Aside from wheat, the prices of corn, rice and barley have all risen by over a third since 2005. Food prices around the world are rising so quickly that a new term has been coined to describe the ballooning price of breakfast staples and dinner-time favourites: agflation."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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