Latest data suggest that inflation in rapidly growing BRICS1 remains elevated (Table 1). 1  Brazil, Russia, India, China and South Africa. BIS central bankers’ speeches  1  Global factors With recovery, global commodity prices rebounded given the higher level of commodity intensity of growth in EMEs. There was also an element of financialisation of commodities given the global excess liquidity2.
Crop loss due to adverse weather conditions in many parts in the world coupled with increased diversion of foodgrains towards biofuel exerted added pressure on global food prices. Thus, global commodity prices including food prices rose sharply. For example, the IMF Commodities Index rose by 24 per cent in 2010 on top of an increase of 43 per cent in 2009.