Those who think gasoline and food prices are high now should brace themselves for what is coming, a leading commodities strategist warns.
“People may be surprised at how high prices can go,” predicts Colin Fenton, the head of commodities research at JP Morgan in New York. Fenton, in Denver this week to talk to clients, said inflation is well under way in everyday items consumers buy, even if the consumer price index reports a modest 2.2% rate.
As an example, he points to the little bag of chips that are a staple of sack lunches and sandwich shops. From November 2001 to August 2007, they were stable in price, rising only a penny to 34 cents. They now cost 45 cents, with a 6% jump the past 12 months.
Gasoline prices are where consumers probably notice commodity volatility the most. But people need to fill their tanks to get to work, he said. [Read more...]





