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Surge in crop prices may boost global inflation

Central banks may decide to slam on the brakes, causing a sharper than expected rise in short term interest rates

In the past six months to a year, wheat prices have jumped by 16 per cent and rough rice by 14 per cent on US commodity exchanges; climate change is being blamed.


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...

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