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“Fineco Worldwide”– Food Will Weather Chinese Rate Hike…

Todays Date: December 18, 2018

“Fineco Worldwide”: With an increase in China’s interest rates looming, commodities may face retrenchment.

“Fineco Worldwide” analysts have speculated that while the price of many commodities could face sharp declines on any increase in Chinese interest rates, agricultural and other foodstuffs are likely to remain bid.

Food price inflation in China has resulted in the cost of items like corn, pork and even garlic to soar with many retail suppliers changing prices on a daily basis.

One “Fineco Worldwide” analyst said, “The picture is the same in the West where most people would wholeheartedly reject the notion that inflation is contained.”

The company holds on to its view that the deflation argument that central banks have been using to justify prolonged loose monetary policy should only be applied to assets like real estate, stocks and debt.

“The things that people really need to buy like food and fuel are costing more but this is due to the value of the currency with which they purchase these items being steadily eroded by profligate monetary policies,” added the “Fineco Worldwide” analyst.

The prices of construction materials like iron ore, aluminum and copper may decline if China’s new monetary policies lead to a fall in demand but food prices are likely to be insulated along with oil and, perhaps, precious metals.

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