Deutsche Bank statistics show that sugar prices rose 21.5% in August, the largest increase since 2018; wheat rose 18.3%, the strongest in four years; and corn rose 16.8%, the largest monthly increase in five years. These changes broaden the sources of inflation the market needs to pay attention to. Recent tensions in the Middle East have initially affected inflation expectations through energy and transportation costs, while the simultaneous surge in agricultural product prices in August indicates that food prices are also beginning to experience more significant price pressure. Deutsche Bank believes that compared to energy, rising food prices are more likely to be reflected in consumers' daily spending, therefore the duration of these increases is more crucial than the magnitude of a single month's increase.
