Jakarta - DBS Bank Ltd estimates that commodity price increases and inflation will continue this year and affect producers' margins in the upstream and downstream sectors.

In the Regional Industry Focus report titled Commodity Inflation Analysis, DBS Group Research explained that most commodities, such as metals, energy, and agriculture, experienced difficult times in 2020 due to the Covid-19 pandemic. This condition resulted in a decline in economic activity.

Even so, signs of recovery have begun since the end of 2020. Moreover, it is expected to continue until 2021, according to DBS Bank research published on Friday (3/9).

DBS Bank said several factors influenced this strengthening, such as the ongoing global recovery that prompted a sharp increase in commodity demand and a return to pre-Covid-19 conditions.

The early recovery of the Chinese economy and the United States (US) infrastructure spending plan mainly triggered demand incr