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Commodity-driven food inflation to persist in 2021 – Rabobank


Sugar, cocoa among raw materials seeing outstanding demand
Food inflation could be here to stay amid rising commodity and shipping costs related to the pandemic and global weather patterns.
That s the outlook painted by Rabobank, the Netherlands-based financial services and banking firm, as the S&P GS Ag Index of raw materials rose to its highest level since 2014, having climbed almost 50% since the middle of last year.
Rabobank pointed to four factors driving the gains and which are likely to remain through 2021: weakness in the US dollar; the possible extension of the La Niña annual climate pattern into the US spring planting season; global demand for commodities; and speculative trading as a hedge against inflation. ....

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