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Saturday, July 19, 2008

Inflation roars

US now has the worst inflation since 91 thanks to rising price of oil and that triggered a rise in food prices. High oil causes gasoline to go up which causes more corn to be turned into ethanol. This and floods which reduced the corn crop have made the grains super expensive, and we know that corn is used in animal feed so now eggs and milk are more expensive.

I predicted that high prices and inflation would start to affect people before the end of this decade and here it is. The high price of oil did cause items made of oil like plastic to become more expensive and it makes transportation for items more expensive.

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