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Goldman Sachs predicts further rise in prices

19 October 2007
Written by: webmaster Posted under Globalization

Analysts of the largest in the USA investment bank Goldman Sachs predict the further rise in prices on wheat, meat, eggs and dairy products in Russia, Brazil, India and China.
it is informed In the bank’s message of that the inflationary pressure in these countries will be kept at the maximum level. Experts mark high taxes and demand for alternative energy sources as the main the factors influencing the rise in price for food stuffs in the set of these four countries.
Goldman Sachs emphasizes that for last months the base prices for agricultural products have sharply grown in the developed and developing markets. So, in the USA and the Europe wheat has risen in price more, than twice, having reached a record level in connection with that the prices for grain urges on a combination of strong world demand - especially in Asia - and anxieties concerning weather. Besides, grain is even more often used for biological fuel manufacturing.
Goldman Sachs’ experts emphasize, that the high prices for food stuffs will slightly accelerate inflation in spite of the fact that they start to influence other consumer goods and services. Goldman Sachs has also noted, that the central banks of China, Brazil and India have already sounded fears in occasion of a proceeding influence of the high prices on food stuffs, and the president of Russia has informed that the country feels influence of the high international prices on food stuffs after officials have recognized that the rate of inflation can exceed 10 %.
In experts’ opinion inflation of the prices for food stuffs is now appreciable in many developing markets. So, in China inflation has made 18 % in annual calculation - a maximum level for the last10 years. At the same time Goldman Sachs specifies and that if inflation will be limited, agricultural incomes will grow owing to the high prices for food stuffs, especially in India and China.

 

 




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