Wednesday, 25 May 2011

Food fright

Would love to talk about the 1st Quarter GDP results, but its not all that interesting except for that unexpected growth in imports relative to exports.

Right now...
The only thing people can talk about is prices these days, so i'll add my own 2 cents (hmmm, might have to adjust that for inflation)

The funny thing is, the papers kinda have a consumer-bias to it. I'm sure the producers would have a thing or two to say about that.

But really, current data from DOS says that not all producers are created equal when it comes to prices! It's not real rocket science to see those industries which are commodity-dependent (food, rubber, chemicals, etc.) to feel a significant pinch from their input costs.

Almost makes you sympathetic to the producer, considering the reported 5%-ish food CPI increase in recent months. Now, if we can only fix that darn labour market so we won't lose that much consumer surplus.

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