December 23, 2004 09:26 AM
Leave No Truffle Behind?
Excerpt: Truffle inflation should come as no surprise. The devaluation of the dollar against the euro and some other currencies like the British pound and the Swiss franc forces American importers of goods from Europe to raise prices or accept sharply lower profits because they must spend more, in dollars, to buy products priced in European currencies. On things like truffles and caviar, where few equally good domestic substitutes exist and where aficionados can afford the best, there is little incentive to keep prices from rising in the United States.
At Le Bernardin, the four-star Manhattan seafood restaurant, the prix fixe menu these days runs a hefty $92. But Eric Ripert, the owner and chef, winces every time a customer orders the wild salmon on a bed of asparagus.
"If you choose the salmon you kill us," Mr. Ripert said. "We are losing money every time we sell a portion."
Mr. Ripert is not used to worrying about the value of the dollar in foreign currency markets but it is much on his mind lately. That's because one of the prime ingredients in the dish is black winter truffles imported from France's Périgord region.
With the value of the dollar down by roughly 35 percent against the euro since the beginning of 2002, the preserved truffles Mr. Ripert imports to use in his sauce have risen sharply in price lately. Today, a seven-ounce tin costs him about $280, up from $200 a year ago.
The dollar's weakness, Mr. Ripert said, "is a real disaster at the level of the truffles."
Truffle inflation should come as no surprise. The devaluation of the dollar against the euro and some other currencies like the British pound and the Swiss franc forces American importers of goods from Europe to raise prices or accept sharply lower profits because they must spend more, in dollars, to buy products priced in European currencies. On things like truffles and caviar, where few equally good domestic substitutes exist and where aficionados can afford the best, there is little incentive to keep prices from rising in the United States.
But apart from truffles, a variety of other imported foods and a handful of specialized European products, the sinking dollar has so far had a relatively modest impact on the prices paid by American consumers. Excluding oil, import prices rose by 0.7 percent in November, the fastest pace since January. The average price American importers pay for nonoil foreign goods has increased 3.4 percent over the last 12 months.
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