Food prices have not seen a similar rise as energy prices, but that is coming to an end. Companies are already starting to feel the cost of food going up and it is rippling through the economy. Two things are likely to exacerbate this. One is weather: This summer for the US is forecast to be very hot with drought conditions across growing areas. That will damage crops and push up prices. The other factor is the “deal” that Trump made with the Chinese, to buy massive amounts of U.S. agricultural and farm products in an effort to narrow China’s trade surplus. You narrow the surplus, but you raise prices.
