Global food prices are rising again with the United Nations Food and Agriculture Organisation (FAO) food price index hitting 168 points in November, the fourth consecutive month of increase and the highest since September 2008.
Several reasons have been highlighted for the rising prices. However, FAO has possibly for the first time highlighted the 'growing appetite by speculators and index funds for a wider commodity portfolio investments on the back of enormous global excess liquidity', as exacerbating the situation.
An inevitable consequences of infinite QE is that money will seek returns outside of preferred asset classes.
Source: business.asiaone.com
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