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Central banks across Asia are bracing themselves for the challenge of curbing inflation amid soaring food prices, particularly rice, a dietary staple in the region. The cost of rice surged to its highest since 2008, sparking concern among economists at HSBC Holdings Plc.
Frederic Neumann, leading a team of economists at HSBC, referred to the significant impact of the 2008 food price scare in a research note published on Friday. During that time, escalating rice prices quickly influenced other markets as consumer demand soared and governments rushed to ensure sufficient supply. The situation also boosted the prices of other staple foods like wheat, as consumers sought alternatives.
Thailand, a key global exporter, has seen its rice export prices rocket to over US$600 (21,480 baht) per tonne, marking a near 50% increase year-on-year. This…
