Fed/Banxico Thu Oct 1 04:49 Bloomberg
Why pricier crops could worry central banks
What happened
Global prices for agricultural products recorded their biggest quarterly rise since Russia invaded Ukraine in 2022, according to Bloomberg. It comes amid tensions in the Black Sea region, which the report describes as key, and extreme weather. Bloomberg says these threaten to add to central banks' worries about inflation.
Why it matters
Crops are the raw material for a big part of the food at the supermarket, so when they cost more, food can get more expensive, and food prices are part of what inflation measures. The general rule for any central bank, including Mexico's and Canada's, is that when inflation threatens to rise, it tends to keep interest rates high for longer. That changes what a loan or a credit card costs.
Market impact
The report does not say how markets reacted or whether any central bank changed its plans, so it is too early to tell what effect it will have. What it does say is that the jump threatens to boost inflation.
Learn more
What inflation is, and how it hits you Read the lesson →Words in this story: Inflation, Interest rate