Global food prices fell last month and are down sharply from highs seen two years ago.
The FAO Food Price Index for August came in slightly below July levels, but there is a big change from historical highs. The index was more than a point lower than this time last year, and nearly 25 percent off highs back in March of 2022. Decreases in areas like sugar, meat, and cereals outweighed increases for vegetable oils and dairy products.
House Ag Committee Chair GT Thompson says inflation is still a problem, and he blames bad Washington policies.
“I realize we’re not at 9% inflation, but we’re nowhere near where we were from 2016 to 2020, when inflation was quite frankly, it was almost nonexistent. They can debate all they want for what caused it. But if you really do a root cause analysis, and that’s the only way you do proper problem solving to figure out what the real problem, what is the root of this issue? It really comes back to bad executive branch policy and it starts on day one of the Biden Administration when they demonized domestic production of natural resources. And when they did that, they, I mean, even before the ink was dry on the executive orders, just what that did to the with the speculators, it drove up the cost of of diesel fuel, propane of gasoline, home heating fuel, impacting not just farmers but all families.”
Higher interest rates have been another point of pressure for Americans over the last year. The markets are already preparing for the Fed meeting later this month. Some analysts think Fed Chair Jerome Powell could cut rates by as much as 50 basis points. That meeting will happen September 18th.
