posted on 07.17.14

April and May data are confirming what was suspected: the severe winter weather in the eastern half of the country did have an impact on the economy. Not all sectors were equally affected, with the impact most obvious for car sales and housing starts. These have rebounded quickly.

With the economy getting back on track, a new concern for consumers is a combination of events that is starting to have a widespread effect on consumer prices. Drought in the United States is resulting in higher beef and milk prices as ranchers thin herds. Hog prices have felt the effects of Porcine Epidemic Diarrhea (PED), which has wiped out as many as seven million piglets. Continued conflict in the Middle East has raised oil prices, although the effects have been somewhat muted by increased U.S. production. A cup of coffee to soothe your nerves? That cost is rising due to drought in Brazil.

To see the full 4-page report, log in to the MTI Members Only area and click on June Economic Report in the featured resources box.