1999-06 PAER
June 15, 1999
- Trade Negotiations Coming Again Soon
- Marketing Value-Added Grains and Oil seeds
- Deciding to Switch to Narrow-Row Corn
Articles in this Publication:
June 15, 1999
Philip L. Paarlberg, Associate Professor
Jennifer Vandeburg, Graduate Student; Joan Fulton, Assistant Professor; Frank Dooley, Associate Professor; and Dirk Maier, Associate Professor of Biological Engineering
Alan Hallman, Graduate Assistant and J. Lowenberg-DeBoer, Professor
The March 2026 CPI report confirms what the structural analysis predicted: the Iran Conflict’s initial consumer price impact is concentrated in motor fuels, which respond to crude oil prices with almost no lag. The 0.9 percent monthly CPI increase is large by recent standards — the largest monthly increase since mid-2022, but it is not yet the broad-based food and goods inflation that a prolonged Strait of Hormuz disruption will eventually produce.
READ MOREWhen an energy shock ripples out from the Persian Gulf, the headlines focus on oil prices, gasoline costs, implications for value chains and the profit margins of U.S. producers.
READ MOREThe initial public reaction to an oil price shock reaching $110 per barrel is often to project near-immediate, dramatic increases in grocery prices. This instinct overstates the direct farm-to-retail transmission channel in a straightforward and measurable way. The USDA Economic Research Service tracks how each dollar of consumer food spending is distributed across the supply chain in its Food Dollar Series. The picture it reveals is sobering for those who expect large and rapid retail food price responses driven purely by higher farm input costs.
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