Commodity Price Inflation Gets Red Hot — Chili Pepper Style

It turns out commodity price inflation is not just limited to some of the more common metals, plastics, oil and food categories. Now, even the pricing heat from chili peppers is rising. According to a recent Reuters Wire Story from India, chili futures rose in late June thanks to supply disruptions "in the main spot market and on good export demand ... traders in the Guntur spot market in Andhra Pradesh were on strike from June 9, demanding compensation for losses to farmers and traders in the fire last month." In addition, "Poor crops in China and Pakistan, the other main producers, has boosted demand for the Indian produce," according to the story. Late in 2007, we all learned that hop prices skyrocketed as well. Since that posting, I've seen the price of my favorite India Pale Ales (IPA) rise a buck or so at the supermarket. Perhaps the cost of curry will now rise as well, making that cheap Indian meal out anything but!

- Jason Busch

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