CANE - DBA: Food Inflation Is Rising At An Accelerating Pace
Source - Pexels
As you have likely heard, inflation can be broken into two groups: supply-side inflation that stems from physical production constraints and demand-side inflation that depends on interest rate policy and monetary liquidity (i.e artificial constraints). Most investors focus primarily on demand-side inflation as seen by the popularity of "Fed Watching." While this is valid, investors may be missing a major emerging trend in the global emerging economy: skyrocketing food inflation.
Food inflation is perhaps one of the most important risk indicators in the economy. Food inflation precipitated the Arab Spring, the