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Posted Mon Aug 16 2010: from Financial Times:
Economic Outlook: Toll from wheat price to emerge
Will soaring wheat prices feed through into higher inflation? This week's data releases will provide more clarity on the extent to which the sharp rise in global agricultural markets in July has affected prices in the world's food markets - although economists warn that the full effects of higher wholesale prices may not be felt for months. Rising inflation could put pressure on policymakers to tighten monetary policy sooner. The return of inflationary concerns comes after the price of wheat rose almost 50 per cent in July as Russia, the world's third-largest exporter, suffered its worst drought in more than a century.
[Read more stories about: weather extremes, food crisis]

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'Doc Michael says:
A little wheat-belt tightening, that's all.

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