IMF expects commodity prices to rise
Commodity prices are set to rise further in 2010, and are "expected to remain high", after an unusually strong recovery from global recession, the International Monetary Fund has said.
Stronger demand for raw materials, fuelled by global economic recovery, will prove the "main source" of pressure for price increases in 2010, the IMF said.
"Demand is expected to continue rising at a solid pace as industrialisation continues in emerging and developing countries," IMF analyst Thomas Helbling said.
However, the threat of a 2008-style price spike looks remote for now, given robust commodity supplies.
"With inventories remaining above average for many commodities, and substantial spare capacity in many commodity sectors, the upward pressure is likely to remain moderate for some time," Helbling said.
Strong price rises would require much stronger-than expected global growth or other surprises.
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