Economists polled by The Wall Street Journal expect overall annual inflation to rise by 1.1%. That’s not so bad, right? Well, they don’t count stuff like food, which we all need to live. Unfortunately, food prices are expected to rise by 3.5%, so your stagnant wages will be stretched a little thinner.
But thanks to drought conditions in various regions, food prices are surging.
The Journal reports that “in California, the biggest U.S. producer of agricultural products, about 95% of the state is suffering from drought conditions, according to data from the U.S. Drought Monitor. This has led to water shortages that are hampering crop and livestock production.”
But don’t give Mother Nature all the blame. Allysia Finley recently explained in these pages how environmental regulations allegedly intended to protect fish like the tiny smelt are diverting water from California agriculture.