Withupward price pressures already impacting the economy in areas like constructionand building supplies, it was only a matter of time before food price inflationarrived at a supermarket near you.
TheBloomberg Agriculture Spot Index has risen by 76% year-over-year - the biggestrise in nearly a decade. This is morethan just a problem at the American dinner table as there is extensiveliterature connecting big jumps in food prices to periods of socialunrest. The Arab Spring unrest in2010-11 coincided with the last jump of this magnitude.
Deutsche Bank’s Jim Reid points out that “…emerging markets are morevulnerable to this trend, since their consumers spend a far greater share oftheir income on food than those in the developed world.” And Warren Buffet saidat this weekend’s Berkshire Hathaway annual meeting that "We are seeingsubstantial inflation. We are raising prices. People are raising prices to us,and it's being accepted." BerkshireHathaway owns, among many other holdings, food processing giant Kraft Heinz.
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Womack Investment Advisers, Inc.
WOMACK INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Website: www.womackadvisers.com
Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in Oklahoma. Womack Investment Advisers, Inc. is also registered in the State of California, the State of Illinois, the State of Indiana, and the State of Texas. WIA only transacts business in sates where it is properly registered, or excluded, or exempted from registration requirements.