The current economic situation reflects job growth that continues to thrive above expectations and inflation levels that are more persistent than expected. It’s not a coincidence that higher wages have perpetuated robust inflation. Wages can squeeze the organic farmer, who relies on higher prices to remain profitable.

One of the most essential pieces of the inflation picture is pricing at the consumer level. If prices become too high, the consumer will reduce purchases, eventually lowering prices. When prices decline, they tend to draw in consumers, especially for discretionary products such as organic dairy, poultry, and eggs. As prices accelerate, food-at-home inflation can help or destroy consumer demand.

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