At least the Bloomberg headline that oil had climbed above $112 on Libyan armed revolt also noted that “dollar weakness” was a factor. Personally, I wouldn’t give all the blame to dollar weakness. Perhaps something closer to 99 and 44/100%.
Not to worry, the flawed analysis will doubtlessly be extended to increases in food and food commodities prices. According to the Food and Agriculture Organization of the United Nations, food and food commodities prices have increased so as to finally exceed 2008 levels.
Just keep in mind that the real value of real things is always more stable than the nominal value of money. It ought to give you some peace of mind, as you contemplate headlines screaming of food shortages and other doom and gloom reckonings.
Incidentally, the USDA recently projected the corn stockpile will hold steady by the end of the growing season, surprising traders that were sniffing a possible decline that could mean higher prices. Some of the traders weren’t too happy according to a Wall Street Journal article, accusing the USDA of having “shutdown” before the shutdown.