In January, expensive
commodities led to inflation, higher interest rates in developing markets, riots in the Arab world, and lower economic growth.
Not exact matches
In fact, the sentiment is so heavily skewed towards deflation, low growth and low interest rates forever right now that an unexpected rise in
inflation in the coming years could
lead to great returns in
commodities for a time.
Printing press money aimed at stimulating the economy but only serving
to push up
commodity and stock prices without adding
to the supply side of the economy
leads to inflation.
Since
commodities are viewed as a hedge against
inflation, this drop has
led to a collapse in investor demand.
Since
commodities are viewed as a hedge against
inflation, this drop has
led to a collapse in investor demand.
The problem is,
inflation and high
commodity prices — including oil and gas prices — tend
to feed on each other in a vicious circle: people stock up on
commodities to hedge against
inflation, which
leads to even higher prices, and thus
inflation continues
to rise.
One consequence is that
inflation fears could
lead to inflation through massive deployment of money into
inflation - hedging assets such as
commodities.