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US food prices are rising: Blame God, not the Fed

AP Photo/Gary Kazanjian
It’s been a tough year for tomatoes in California.
By Matt Phillips
Published Last updated This article is more than 2 years old.

Financial markets have been sizzling this year, with prices of key food commodities leading global markets higher. Here’s a look at some of the top performing assets this year. They smell delicious.

Inevitably, commodities prices have started to seep into consumer prices. This morning’s US consumer price index data showed food prices rising 0.4% between January and February, the biggest jump since September 2011.

Now, when food prices were on the rise back in 2011, plenty of outrage was directed at the Federal Reserve. People blamed its bond-buying programs for pushing commodities prices higher in financial markets.

This time the culprit is pretty clearly the weather. For instance, in Brazil, dry conditions have driven up global prices for coffee, oranges, and sugar. And the California drought pushed prices for beef and vegetables higher.

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