This episode explores the rising cost of a bacon, egg, and cheese sandwich and a cup of coffee in the U.S., examining how various economic factors contribute to this increase. Against the backdrop of inflation, the podcast delves into the significant impact of avian influenza on egg prices, doubling their cost in a year, and the role of potential price-fixing investigations. More significantly, the discussion highlights the influence of global events, such as the war in Ukraine, on wheat prices and the subsequent impact on bread costs. For instance, the instability in the global wheat market, heavily influenced by Russia and Ukraine, has led to fluctuating prices for U.S. wheat farmers, despite increased input costs. Furthermore, the podcast analyzes the relatively stable cheese prices despite increased demand, contrasting this with the volatility in coffee prices due to speculative investment and tariffs imposed on coffee-producing countries like Vietnam. Ultimately, the episode reveals how interconnected global markets, trade policies, and unforeseen events like disease outbreaks influence everyday consumer prices, leaving consumers to grapple with the consequences.
