The prices of many commodities are cratering and everyone is panicking. But it does have some advantages — low commodities prices have meant the cost of an English breakfast is now at its lowest cost in five years.
The Financial Times breakfast index shows that an equal weighted average of six commodities — wheat, milk, coffee, orange juice, sugar and lean hogs — is at its lowest level in 5 years.
For the toast, wheat prices are down 23% year-to-date, while lean hog used for sausages is down 16%.
Furthermore, coffee is down 28% and the sugar you put in it is down 22%. Orange juice is also lower by 10%. However, milk is actually up 2%.
The FT warned that this index is a “simple average and only shows a notional value of the morning meal it does reflect the food deflation that is affecting farmers, as well as consumers, this year.”
However, cheekily, the FT breakfast index doesn’t include a couple of core staples to the traditional English meal — bacon and tea.
Tea is actually up 67% this year due to droughts causing a shortage of supply. Pork prices are also surging by nearly 20% in 2015 so far due to disease knocking out most of China’s supply.
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