According to HSBC Holdings, rising food prices in Asia may harm both the global economy and central banks in their battle against stubborn inflation. Economists say that rice, the region's staple food, is surging at the fastest pace since 2008. Notably, Asian countries raised the alarm amid soaring food prices 15 years ago with prices for rice skyrocketing the most. As efforts were made to secure supplies, the food panic spread to other markets. Against this backdrop, the prices of other key food commodities, especially wheat, also jumped. The export price of rice from Thailand showed the largest increase, reaching $600 per metric ton. Notably, rice prices may remain high for a long time unlike those of tomatoes and onions, whose prices tend to decrease after rapid growth. Rice harvests are also damaged by erratic rainfall and drought. This reduces supply and increases production costs, narrowing grain exports.
