‘Explosive’ Food Prices the Biggest Risk: Analyst
By: Patrick Allen
Monday, 17 Jan 2011
Overheating emerging markets, in China in particular, pose the biggest threat to the market and political situation in 2011 according to Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.
“These economies are clearly overheating and governments are putting measures in place to slow them down to fight inflationary pressure. More than anything else, food inflation is a problem,” Gijsels told CNBC.com.
“In countries were 70 percent to 80 percent and sometimes more of a family’s budget goes to food, explosive price rises risk to destabilize these societies. Remember the old saying: ‘hunger starves civilizations,’” he added.