Aug 5, 2022Liked by Peter Nayland Kust

I'm curious. Is some of that demand destruction, like it is with fuel? I've noticed at our local grocery store that a lot more stuff is going clearance because nobody is buying it, and I live in a pretty high income retirement area.

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The FAO Food Price Index is a global index. It amalgamates food prices from around the world.

The decline more likely indicates a moderation of various supply side issues (e.g., the resumption of some grain shipments from Ukraine and Russia) than the impacts of demand destruction vis-a-vis Fed interest rate hikes or other anti-inflationary measures.

Ostensibly, if food supplies increase, if food availability improves, the need for demand destruction to contain food prices should ultimately decline.

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