In recent months, we used to see the rise in food prices. In February, in particular, the index of food prices from the Food and Agriculture Organization of the newly marked record highs. According to this index, food prices roughly tripled in less than a decade. During take-off in energy prices and budgetary constraints, consumers in many developed countries lament a significant increase in cost of living.
The situation in developing countries, potentially even worse, especially in those which import a lot of food. According to the Asia Development Bank, in many economies of the region, the weight of food in the food basket is more than 40%, including Vietnam, Sri Lanka, Pakistan, India and Bangladesh. In China, food takes nearly a third of revenues. Also, for many reasons, one-half to two thirds of the acceleration of consumer inflation over the last year due to the rising cost of food - a fact that politicians in the region are paying attention. However, at the same time, higher prices of essential commodities to some extent a reflection of growing demand in the region, as it increases the middle class with more disposable income and wealth.
It is interesting that since the peak levels of space for decades, reached earlier this year, prices of some basic crops somewhat weakened. For example, the sugar has fallen off a third, while wheat, rice and palm oil fell by more than 10% of the peak. Of course, it is too early to talk about the spread, but recent trends are definitely gives you some breathing room in the rally.
Translate this page
Absolutely no concessions to the Spanish labor market, and today's data now showed an increase in the unemployment rate to horrific 21,3% in the first quarter from 20,3% in the fourth, and this was a peak in 14 years. And the bad news does not end there - the inflation in April exceeded the 3.8% y / y, and retail sales failed to 8,6% y / y in March. These data demonstrate the continued support of the intensity of fears for the solvency of Spain.
At a time when true love prevails in Britain to mark the royal wedding between the markets and the dollar, it seems, love does not remain. Lightly not have lasted up to the expectations of growth of the first quarter, showing an increase of 1,8% on an annualized basis, but the U.S. have nothing to be proud of. Consumer spending provided a contribution of 1,9% for the quarter, but the main obstacle was the fall in government expenditures (subtract 1.1%). There is still a significant inhibition compared towith the previous recent recovery ,and the labor market and does - very much . The biggest fear now is with regard to the fact that all the growth has been attained ultrasoft Fed policy. Take her away and will be a serious question whether the current recovery self-sustaining.
This morning, the president of SNB Hildebrand made several strong statements Swiss franc impetus to growth. In addition to indications that there are upside risks of price stability, he also suggested that the economy was more resilient to the stronger currency than expected. Hildebrand voiced fears that the country may suffer from high commodity prices, if the currency will plummet. In a relatively quiet Friday Suisse reached 0.87 in early trading in London.
The dollar declined against the euro to a minimum of 16 months, as Bernanke said that to determine the time for tighter monetary policy is not yet possible, as well as the program for redemption of bonds will end in June, which increased the demand for higher-yielding currencies.