Saturday 25 February 2017

Thomas Molloy: You ain't seen nothing yet -- €3 a litre is on the way

Thomas Molloy

Thomas Molloy

AS China's and India's massive new middle classes swell by tens of millions every year, more people are buying more things across the world -- leading to sharp price increases in everything from oil and gold to wheat and onions.

While many economists warn of a commodities bubble caused by speculators, there is little doubt that the factories in the emerging economies -- as well as the expanding US and European economies -- are devouring vast amounts of raw materials.

Wealthy consumers only notice commodity inflation when the cost of oil rises but the world's poorer nations have been suffering political unrest for sometime because surging food prices cause unrest in urban areas of poor countries.

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