Commodity prices likely to rise further

As inflation surges, commodity prices are in the spotlight, and analysts and experts say the only way is up for the foreseeable future, which means pain for all of us.

Mr Avtar Sandu, senior manager of commodities at Phillip Futures, said: "We have a perfect storm for inflation as well as higher commodity prices - supply shortfalls, pent-up demand, inventories at low levels and weather affected by climate change." Another reason is that most commodities are traded in US dollars, which have appreciated as interest rates rise there. This in turn raises the price of commodities yet again.