bbc.co.uk/news/business-12176893
bbc.co.uk/news/business-12176893
Floods in Australia, drought in China, fires in Russia have all contributed to shortages and higher food prices. BBC reports the food prices have increased twenty percent. The UN Food and Agriculture organization says that speculators while not the cause have magnified the problem.
The situation in the Middle East has resulted in high oil prices that if they remain will result in increased costs for all business sectors. The International Energy Agency is warning that higher fuel prices could pose a threat to the economic recovery in developed countries.
Does the combination of the two deepen or increase the length of the recession?
Hello, had to say, enjoy your thoughts.
In re: to your question, “deepen or lengthen recession”, the question that pops into my head is, “what is the actual Big picture of this recession?” or “how bad is this recession?” as a whole.
Are these discussions the same old “news” or have we come somewhere with this insane economy?
I’m interested to hear from others but heres what i think. So much of our economy is based on consumerism that the perception of a recession or fear of one is enough to create one. In this case, rising commodity prices are creating inflation that in turn create doubt in the consumer - which then leads to them tightening up on their purchases and then whamo - we are in a recession.
here’s another recent story relating to the topic…
Tim Horton’s has announced that they will be increasing prices in response to rising food commodity prices:
canadianbusiness.com/markets … 412&page=2
Although the price increase will not be too significant (less than 5%), it draws to attention of the average consumer of the worldwide concern that “Increased demand and disasters in major food producing countries — floods and drought in Australia, drought in Russia and floods on the Canadian Prairies — have driven food commodities prices up 41.8 per cent compared with last year”, according to Scotiabank’s most recent report.
This trend of rising food prices is bound to continue in all dining segments, and will alter the spending patterns and consumer behaviour, forcing people to prioritize their wants and needs.