US: Lower demand, economic pessimism help to lower prices

Published 2022년 9월 19일

Tridge summary

Last week, global markets experienced a downturn following the U.S. inflation report for August, which showed an 8.3% year-over-year increase, despite a slight decrease in gasoline prices. This unexpectedly high inflation rate, along with the Federal Reserve's decision to raise interest rates, has led to market volatility and the possibility of a recession. Despite the overall price increase, the cost of fresh produce, including strawberries, squash, and tomatoes, is decreasing. However, lime prices have surged due to weather-related supply issues and criminal activities in Mexico. The article also mentions price fluctuations in other fruits and vegetables such as cucumbers, strawberries, and cantaloupes, caused by various factors like inclement weather and shifting growth regions. The ProduceIQ Index is highlighted as a crucial tool for tracking produce prices at shipping points or ports, providing an industry benchmark for price performance.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Global markets plummeted last week in response to August’s U.S. inflation report.Consequently, many Americans may forgo purchasing their favorite pumpkin spice-scented candle this fall, among other optional fall purchases.The inflation rate is still very high, 8.3 percent, despite lower gasoline prices. Because of July’s encouraging CPI report, many mistaken optimists assumed that U.S. inflation would ease quickly and that the Fed’s aggressive anti-inflation policies would loosen.When CPI’s report painted a more dire picture than investors had hoped, it all but confirmed the Fed’s decision to hike interest rates exponentially in this week’s meeting on the 21st of September.Continued rate hikes by the Fed undoubtedly increase the likelihood of recession and market volatility. As a result, the fresh produce industry will need to seek innovative solutions to compensate for shifts in consumer demand.Inflation may not be falling, but overall fresh produce prices are. Strawberries, ...

Source: Producebluebook