To the bewilderment of many, economists ignore food and energy - TopicsExpress

To the bewilderment of many, economists ignore food and energy prices when considering inflation. Heres why. Two years ago soybeans were $17.94/bushel because a drought sent prices to all-time highs. Today, due to outstanding weather, front-month soybeans are at $9.90/bushel. Similarly, today gasoline is 20% cheaper than in June! These volatile prices tell us about weather conditions and possible supply disruptions, neither of which give insight into future inflation trends.

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