El Nino, Strait of Hormuz risks may fuel fresh global food inflation surge: Citi Research Report
New Delhi, May 23 -- Global food inflation risks are rising due to possible disruption in the Strait of Hormuz and worsening El Nino conditions, according to a Citi Research report, which warned that agricultural commodity prices could face strong upward pressure over the next 6-12 months.
The report said agriculture markets are vulnerable to supply disruptions caused by higher energy costs, fertiliser shortages and adverse weather conditions linked to El Nino.
"Agriculture price risks are heavily skewed to the upside over the next 6-12 months, as they face major supply risks resulting from a potential prolonged closure of the Strait of Hormuz, and from likely poor weather related to El Nino," Citi Research said in its Commodities Outlo...
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