The Variant Perception Blog

Share this post

A perfect storm for food prices

blog.variantperception.com

Discover more from The Variant Perception Blog

Re-imagining the investment workflow, leveraging man plus machine for the modern investor
Over 5,000 subscribers
Continue reading
Sign in

A perfect storm for food prices

VP Research
Oct 2, 2021
Share this post

A perfect storm for food prices

blog.variantperception.com
Share

Brazil is suffering the worst drought in a century, after its crops were scorched and frozen earlier in the year.  Agricultural commodities prices are spiking, forcing the UN world price index 33% higher vs 12 months ago.  EM inflation baskets generally have a much higher weighting of food prices compared to DMs, which has accelerated hiking cycles across EMs.  Global liquidity conditions are tightening and there is increasing evidence that inflationary pressures won't subside easily.

Source: Bloomberg, Macrobond, Variant Perception

For more on Brazil's agricultural shock, please see this Bloomberg post.

Get the full picture at variantperception.com.

Share this post

A perfect storm for food prices

blog.variantperception.com
Share
Previous
Next
Comments
Top
New
Community

No posts

Ready for more?

© 2023 VP Research Inc.
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing