From AOL DAILY FINANCE:
First came higher food prices, thanks to heat in Russia and floods in China and Australia. Then came soaring gas prices as a result of the crisis in Libya. Now, imported consumer goods — including almost everything from Brazilian orange juice to imported Toyota automobiles — are going to be joining the upward price trend.
The culprit is the U.S. dollar, which has fallen 5% in the last year. The inflation-adjusted, trade-weighted dollar, which is a measure of the greenback against the currencies of nations we trade with, now stands at its lowest level since the Federal Reserve began keeping records in January 1973.
As the dollar’s value falls, the prices of imported goods grow. The falling trade-weighted dollar is closely correlated with higher import prices, explains Carl J. Riccadonna, senior U.S. economist at Deutsche Bank…
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