DeItaone forwarded that UBS (UBS) expects food inflation to remain high for longer, mainly driven by climate-related supply shocks, rising labor costs, and strong demand.
UBS believes that while agricultural technology advancements may improve efficiency, they are unlikely to significantly reduce food prices. Persistent food inflation may benefit supermarkets but will reduce consumer spending on dining out and non-essential items.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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