Agflation
Categories: Econ, Company Management
Think: inflation of ag. That is, agriculture.
Socialist beetles invade the coffee plantations of South America and, with an addicted population of some 5 billion people who get extremely cranky without their coffee by 8 am, agflation hits the coffee bean industry, and prices rise.
Agflation can happen from other means as well. An article comes out ascribing sexual promiscuity for centenarians who eat enough pomegranate bran, if there is such a thing. Pomegranates likely waft upwards in price as demand drives unit pricing higher. Since so much of the food chain is deeply linked, often when one food inflates, it has a direct inflating effect on others. For example, when that socialist sugar beetle migrates to Indiana, consuming corn, driving up its prices, cattle feed suffers inflation.
Yes, Bessie lives on corn. That means meat and milk also get more expensive, and a whole chain of painful cost absorption gets triggered, often globally. Key notion: keep those socialist beetles in Cuba.
