Interesting reading from the Bureau of Labor Statistics today:
Will the 2012 drought have a bigger impact on grocery prices than the 1988 drought?
In the summer of 2012, the United States experienced its worst drought since the 1980s. According to the U.S. Department of Agriculture (USDA), 80 percent of agricultural land in the United States experienced drought conditions in 2012. Extremely dry weather can lead to crop failure, which reduces supplies, and subsequently increases prices. This is important to consumers because higher crop prices typically lead to higher prices for groceries.