US political site ‘The Hill’ report:
- As soon as next week, 115,000 freight rail workers could walk out if they cannot reach a new contract with railroads
- potentially shutting down the national rail network that transports 20 percent of all grain shipments.
- Even a short-lived interruption “would create a devastating ripple effect” on the nation’s fragile supply chains, said Lee Sanders, senior vice president of government relations and public affairs at the American Bakers Association.
- Freight railroads also carry roughly half of fertilizer, and farmers can’t afford delays … “If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers
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There is plenty more here, link.
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Food prices are not ‘core’ inflation, but I think it myopic to disregard food prices soaring. And, if anyone from the Federal Reserve is reading, no, we can’t just eat cake.
This article was originally published by Forexlive.com. Read the original article here.