Will Lower Food Prices Help The Global Economy?
Sharp price declines for key agricultural commodities such as wheat over the past year appear to bode well for emerging markets and therefore global growth prospects.
High food prices have been a source of global economic instability for several years, as global food price inflation has outpaced overall inflation in many developing countries.
However, UBS economist Andrew Cates points out that recent data seems to suggest these trends are changing.
Agricultural commodities have pulled back substantially of late, bringing the food component of the CRB index to multi-month lows.
Continue Reading at Financial Post
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