Wise Bread | Personal Finance and Frugal Living Forums

Right--wheat, like nonfat dry milk, is a globalized commodity, so a weaker dollar translates directly to higher US prices.

It's never quite that simple in practice, especially for agricultural commodities, because they are not only subject to world-wide supply and demand considerations, but also to price supports, export subsidies, and other government manipulations.

Less globalized products, such as bread, are affected much less (in both directions) by dollar strength or weakness.

One thing that's going to be very interesting over the next year or two is to see how the inflation numbers start to move, now that the downward pressure that globalization has placed on the costs of consumer goods has about played out.

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