Surge in crop prices may boost global inflation

London

A SURGE in key agricultural commodity prices could cause an unexpected spike in US, European and Asian inflation. The key question would be the extent of the impact on both overall producer and consumer inflation.

If indeed there are signs of unexpected acceleration in price rises, US, European and and Asian bond yields could rise in tandem with a decline in bond prices.

The market fear would be that central banks may decide to slam on the brakes, causing a sharper than expected rise in short term interest rates.

So far, markets haven't factored in this potential "bla…