Signs of Agflation Hit Egypt
- Joshua M Brown
- October 10th, 2010
My ongoing themes of agricultural commodity demand and frontier markets dovetail nicely on this one:
From the AP via Google:
CAIRO — Egypt’s inflation notched up slightly to 11 percent in September, the government said Sunday, amid complaints about rising food prices in the Arab world’s most populous nation.
Urban inflation was up 0.1 percentage point from 10.9 percent the previous month, according to data from the official Central Agency for Public Mobilization and Statistics. Annual change in consumer prices, meanwhile, increased 0.2 percentage points to 11.7 percent compared to August figures.
Economic Development Minister Osman Mohammed Osman said the gains came amid increase in poultry, vegetable and fruit prices, which climbed due to “seasonal and temporary reasons,” the official Middle East News Agency reported. Osman did not elaborate.
Rising food prices sparked protests over the summer, and Russia’s ban on grain exports, because of a supply crunch there, have contributed to further increases in key staples on which Egyptians rely. The country is the world’s largest wheat importer.
Yes, this is happening. I am investing based on a belief that food crops will be in higher demand than ever as the rest of the world earns more and eats better.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.