The slowing global economy is even having its effect on the relentless bull market in food prices. According to the latest FAO food price index prices are now 10% off their February highs. Just one more piece of evidence that validates the Fed’s focus on core inflation:
» The FAO Food Price Index (FFPI) averaged 215 points in November 2011, marginally (1 point) down from October and 10 percent (23 points) below its February 2011 peak. Among the various commodities, a recovery of oils quotations compensated for a decline in sugar, while prices of the other commodity groups were little changed. At its current value, the FFPI is only 1 percent (2 points) above its level in November 2010.