Rising food prices fuelling global inflation: JP Morgan

Rising food prices are stoking global inflation with many agricultural commodity markets on the rise, driven by adverse weather in key producing countries, a senior trader at JP Morgan said on Monday.

"If you break down the inflation numbers then the impact of food has been extremely significant," Will Shropshire, head of investor trading, product development and agriculturals for JP Morgan.

Shropshire said prices for agricultural commodities had risen to a level that "reflects the tightness of the balance sheets (of the commodities)." He added prices could rise further if markets are hit by any more supply concerns.

"If we have any more shocks to supply the impact could get increasingly dramatic," he said.