By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Markets > Commodities > Rice prices surge to highest since 2008, challenging inflation control efforts
Commodities

Rice prices surge to highest since 2008, challenging inflation control efforts

News Room
Last updated: 2023/09/15 at 2:34 AM
By News Room
Share
2 Min Read
SHARE

HSBC Holdings Plc (LON:) has noted a significant increase in the cost of rice, which has surged to its highest point since 2008, according to their economic forecast released on Friday. This rise could pose additional challenges for central bankers striving to keep inflation under control.

The export price for rice from Thailand, widely regarded as a global benchmark, has soared by nearly 50% year-on-year to over $600 per ton. The sustained high prices of rice, unlike short-harvest cycle crops such as tomatoes and onions, present a particular challenge for policymakers.

HSBC’s research reveals that over the past quarter-century, the proportion of global rice imports relative to consumption has approximately doubled. Following the 2008 food price scare, this trend saw an additional rise of around 4 percentage points. This suggests that any disruption in one economy could have significantly broader impacts on others compared to previous years.

Erratic weather patterns including unpredictable rainfall and droughts are negatively impacting crop yields globally, thereby reducing supply and increasing prices. In response, India, the world’s leading rice exporter, has imposed restrictions on overseas shipments in an attempt to control local prices, which has further tightened global supplies.

Asian economies such as Malaysia and the Philippines heavily rely on rice imports and are therefore significantly affected by these price increases. Korea and Taiwan also show considerable dependence on imported rice. Meanwhile, other economies like Indonesia are similarly vulnerable. While Hong Kong and Singapore import all their rice requirements, their strong purchasing power enables them to secure supplies readily.

This situation is reminiscent of the 2008 Asian food price scare when rising rice prices in several economies rapidly affected other markets. Consumers and governments scrambled to secure supplies leading to increased prices for other staple foods like wheat as buyers sought alternatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Read the full article here

News Room September 15, 2023 September 15, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
‘Alligator Alcatraz’ policymaking leaves the field clear for China

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Trump to step up tariff pressure with letters to trade partners on new rates

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Israel aims to maintain ‘aerial superiority’ over Iran

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

UBS, Citi and other banks hit with $21.5mn penalty over Singapore money-laundering case

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Hitachi Energy says AI power spikes threaten to destabilise global supply

Stay informed with free updatesSimply sign up to the Artificial intelligence myFT…

- Advertisement -
Ad imageAd image

You Might Also Like

Commodities

Russia mulls extra tax for some commodities exports, including metals – sources

By News Room
Commodities

Gold prices tumble as Fed talks higher rates

By News Room
Commodities

Crude oil prices endure downturn amid U.S. interest rate hike anticipation

By News Room
Commodities

China approves export licences for chip materials gallium, germanium

By News Room
Commodities

European energy crisis: ECB, IEA and EIB to strategize on systematic transition amid soaring prices

By News Room
Commodities

Federal Reserve interest rate signals prompt oil price dip

By News Room
Commodities

Oil prices inch closer to $100 per barrel amid inflation concerns

By News Room
Commodities

Brent Crude Prices May Hit $120 per Barrel, Warns JPMorgan

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?