Impact of Bad Weather on Major Crops and Rising Food Prices

Bad weather is affecting major crops, leading to concerns about harvests and rising food prices. A Bloomberg index tracking farm commodities has seen gains, with wheat, coffee, and other staples facing supply challenges. Climate change and geopolitical issues are expected to keep crop prices high.

Rising Food Prices and Profit Margins in the U.S.

A recent report by the Biden administration raises questions about the cause of rising food prices in the U.S. The report highlights how profit margins have surged, leading to increased prices despite supply chain pressures easing. Economists are debating whether these high margins are driving inflation. The Federal Trade Commission (FTC) report points to margin expansion in the grocery sector as a primary driver of recent price increases.