Low Inflation Risk Despite Rising Global Food Prices
by Carmen Lim
@ 29 Apr 2014
According to experts at HSBC, risk of inflation remains low despite rising food prices. The added that the cost of staples has remained steady and global growth is not strong enough to turn higher prices for finer foods into a "full-blown inflation problem”. The rising global food costs are largely due to the unfavourable weather conditions in the US and Brazil, as well as geopolitical tensions in the Black Sea Region. However, as the developing countries get richer, the demand for grains ease and shifts towards ‘finer foods’ such as meat and dairy products, thus the risk of inflation remains low. Read more at http://www.businesstimes.com.sg/premium/top-stories/rising-global-food-prices-low-inflation-risk-says-hsbc-20140422.
