... but the living is squeezy (Macroman sings).
Food production nowadays is a matter of converting fossil fuels to food. So food is not only being competed for directly but via energy costs too - see chart of Wheat (white line) and Oil (brown line). Macroman concludes with the obvious (obvious once one has read it): This could all be looked at as a symptom of the macro picture. The one of the flattening of the global wealth gradient based on the rule that if someone is willing and able to do your job for less than you, you are stuffed. Americans, in his words, are stuffed.
The world is steadily competing for raw materials, so any slow down in the West can only express deflation through lower wages as competition for jobs tightens and hence labour cost inputs fall. So whilst service sector (higher labour component) may see a higher relative price deflation, the basic cost of survival, food and energy to the individual stays the same, or rises as we are now seeing.