Franklin Templeton said that compared to current market expectations, next year's food inflation may push up overall inflation by about 1 percentage point, causing price pressure to continue for a longer period of time, thereby suppressing the performance of government bonds. Michael Brown, a global investment strategist at Franklin Templeton, said on the Bloomberg TV program: “I think the problem of food inflation will come to light next year, but the market is not paying attention to this at present.” He said that crop failure due to the drought is one of the causes of rising food prices; at the same time, poultry farming and other food production costs are still highly affected by energy prices. The agency sees this as a global risk. The root cause of the recent weakening of US, European, and UK bonds is that investors continue to take into account stronger economic growth than expected and prices that are more sticky for inflation. Institutions have determined that the bond market is in a steep phase. It is expected that long-term yields will stabilize around the middle of next year, while short-term yields will continue to rise.

Franklin Templeton said that compared to current market expectations, next year's food inflation may push up overall inflation by about 1 percentage point, causing price pressure to continue for a longer period of time, thereby suppressing the performance of government bonds. Michael Brown, a global investment strategist at Franklin Templeton, said on the Bloomberg TV program: “I think the problem of food inflation will come to light next year, but the market is not paying attention to this at present.” He said that crop failure due to the drought is one of the causes of rising food prices; at the same time, poultry farming and other food production costs are still highly affected by energy prices. The agency sees this as a global risk. The root cause of the recent weakening of US, European, and UK bonds is that investors continue to take into account stronger economic growth than expected and prices that are more sticky for inflation. Institutions judge that the bond market is in a steep phase. It is expected that long-term yields will stabilize around the middle of next year, while short-term yields will continue to rise.