Surging Rice Prices Raise Specter of Asian Food Scare, HSBC Says
Erratic rains and drought in many parts of the world are hampering crops, reducing supply and driving up costs.
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Rising food prices are likely to prove an additional concern for central bankers trying to subdue inflation as the cost of rice — a staple food in Asia — surges the most since 2008, according to HSBC Holdings Plc.
“The memory of the 2008 Asian food price scare sits deep,” economists led by Frederic Neumann said in a research note on Friday. “Back then, rising rice prices in some economies quickly spilled over into other markets as consumers and governments across the region scrambled to secure supplies. It also lifted the prices of other staples, such as wheat, as buyers shifted to alternatives.”