Commentary Price rises—they keep on coming. Even before the recent surge in energy prices, companies had been warning about inflationary pressures in their supply chains. At the end of June, General Mills reported that it was facing cost increases of 7 percent and that it was raising the price of most of its grocery products. “No one wants to increase prices, but we’ve had to,” CEO Jeff Harmening said. Three weeks later, Unilever warned of a hit to profit margins as the price of palm oil, crude oil, and soybean oil had all risen sharply, sending its shares down 5 percent. A week later, it was Proctor & Gamble’s turn, warning that higher commodity and freight costs would lop $1.9bn off current-year earnings. Three years ago, the Intergovernmental Panel on Climate Change (IPCC) warned that climate policies could push up food prices. With bioenergy planned to be a major contributor of primary energy, land-use policies …
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