Consumer price inflation slowed again this month, prompting some optimistic hopes for really low rates by the end of the year.
Well, we can but hope, but I would not be too sure. We may be in for some shocks over food prices.
Drought over large areas of the USA, fields too wet for cows on this side of the pond, leading to lower yields & a threat to silage making for next year.
But, since food prices contribute only 10% of overall inflation as measured by CPI, the overall damage may not be that great.
The effects on farming make me fear much more for Ireland – the last thing they need now is a drop in farm incomes.
