Economists with the American Farm Bureau are warning, despite recent data, inflation is still a concern.
Chief Economist Roger Cryan says that even though month-over-month inflation was zero in July, he believes that the 4.6 percent drop in energy prices played a role. He says that with 10 million job openings in the U.S., it shows a significant demand in the economy, but also warns overreaction could drive a recession. HE speaks about how this will impact farmers.
“A recession doesn’t help farmers, but commodity prices are still relatively high and if fuel and fertilizer prices keep dropping, that would be a big help. And the Fed’s serious attack now, finally, on inflation, I think is helping to restore faith in the market that inflation isn’t going to be a long-term issue. So, we’re already seeing long-term interest rates start to drop, which is very helpful for farmers when they’re looking to invest, and short-term interest rates will come down once inflation has been beat, that could take a couple of years,” Cryan explains.
Cryan believes the economy will see headline inflation somewhere between 5 and 9 percent for over a year, well into 2024.
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