Supply down, price up. According to the Wall Street Journal, the USDA recently had to revise supply down and increase their crop-price forecast. There’s already been a rapid rebound in many industrial commodity prices, and in increase in agricultural commodity prices could add to inflation pressure. Right now, many economists think inflation will be subdued because demand is still sluggish—but if demand picks up, inflation might be worse than people think if supply is constrained. We’ll just have to see how it plays out.
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