World Commodity and Food Crisis: Trends and Expectations

Fri, May 9 2008, 15:36 GMT
by Yelda Yücel

Yapi Kredi Bank


Surge in commodity prices is a recent phenomenon and could be pushing the global economy into a new inflation spiral. Currently, the problem seems to be receiving less attention than the financial crisis that stemmed from the sub-prime market in the US. Although discernibly impacted by channeling of recently increased liquidity into commodity markets in a speculative fashion, price increases reflect certain structural weaknesses in global economy and thus threaten global price stability. An absolute hunger risk in underdeveloped economies, as expressed by myriad high level bureaucrats, is a side issue that could receive more attention going forward. Expectations for price corrections are also mixed and differ according to the specific features of the commodity in question.

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This document is prepared by the Economic Research Department of Yapi Kredi Bank A.S by using official data. No responsibility is assumed for the accuracy of the information given in the document although utmost care has been taken in their compilation and processing.

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