http://business.timesonline.co.uk/article/...90859_1,00.htmlJust read this in the Times - maybe Maxdriver has something.
Apparantly the hot weather is leading to poor harvests and higher prices.
I'd like to know what the demand curve for foods looks like.
I've been listening to people talk about staples like rice and pasta being "Giffen Goods"
http://en.wikipedia.org/wiki/Giffen_goodHere because rice forms the basis of a diet - any increase in its price leads to no reduction in consumption as there is no substitute. The higher prices lead to a reduction of money and .: luxuries are cut-back (e.g. bacon/beansprouts etc...).
To fill the gap more rice is eaten thus increasing demand and cost.
Its a really vicious circle.
For all you Malthusians out there this is probably music to your ears