Commodity prices are rising rapidly around the world - Bloomberg

Commodity prices have been skyrocketing since the beginning of the year and this trend is expected to continue as the global economy recovers .

Commodity prices - from steel and copper to corn and cocoa beans - began to rise sharply as the world economy recovered and by this point had already reached their highest level in several years, writes Bloomberg.

The Fed and central banks continue to pump money into the economy without worrying too much about inflation, which means the trend will continue, even though the sharp rise in commodity prices will ultimately lead to a rise in the cost of final products.

The main driver supporting the growth in commodity prices is the gradual recovery of the global economy, Bloomberg quotes an analyst from UBS Group. The bank expects the growth to continue and next year they will add another 10% in price.

• The price of copper has increased by more than 90% over the past year. The main reason is the promises of Western countries to stimulate the use of renewable energy sources and electric vehicles.
• Grain prices are skyrocketing, which could put farmers at risk in the future. Over the past year, the cost of corn has doubled, and soybean meal has risen in price by more than 40%. Prices are also being weighed down by bad weather, which is disrupting harvests in key producing countries such as Brazil and France.
• Steel becomes more expensive mainly due to the fact that China is reducing the production of steel and aluminum.

Exporters, mainly developing countries, will benefit from rising commodity prices. Importers, on the contrary, will suffer. In particular, the sharp rise in commodity markets will make it difficult to fulfill Joe Biden's infrastructure upgrade plan, which is already valued at $2.3 trillion, the agency said.

Find out more

At the end of February, Bloomberg included Russia in the top five "hot spots" where rising food prices are "of particular concern" and could provoke public discontent. The authorities then said that with rising prices in Russia, everything is no worse than in the rest of the world, and the agency's conclusions are "speculative." The Bell figured out who was right in this dispute.