The World Bank expects commodity prices to remain elevated for years to come as the war in Ukraine alters how commodities are traded, produced and consumed around the world.
Note: Price indexes in nominal U.S. dollars. The numbers for 2022-24 are forecasts.
In its latest Commodity Markets Outlook report, the multilateral bank said that energy prices will soar 50.5% this year from last, after nearly doubling in 2021. The World Bank expects energy prices to then fall 12.4% in 2023. Food prices are projected to rise 22.9% this year before declining 10.4% next year. Food prices rose 31% last year.
New data from the Bureau of Economic Analysis shows that prices continue to rise at breakneck speed—and much faster than the Federal Reserve has projected
Although Fed officials have revised up their projections for inflation considerably, they have not meaningfully changed their course of policy from what was announced last December. It is now clear that those plans were made with very optimistic projections of inflation in mind. Those projections have since been shown to significantly underestimate the extent of the problem
Nymex natural gas rapidly approaching the magical $8/MMbtu level. Just five more cents to go.
These are remarkable times in which we are living. But how average people are making ends meet is beyond me. At least we’re coming out of winter; that is a help. But replenishment of stored natural gas must go forward now for next winter. And the gas companies will not be selling that stored natural gas at a loss come fall.
This article provides data and examples for how (and why) various assets typically perform during stagflationary environments. Bonds and growth stocks tend to have the most trouble.
Guys I am genuinely stunned. NYMEX natural gas has blasted through the $8 barrier and is well on its way, at $8.32 currently, to the nine dollar level. This takes me back to the beginning of this century and “peak gas”.
But wait, there is more . . . . all bad:
NYMEX crude is also, once again, on the rise and sits well above $100.
With energy costs ascending like this, continuing inflation is assured.
Isnt that expected? The higher wages are to keep workers, not get more out of them. And, if your goal is to narrow the wage gap between the peons and the executives, it’s inevitable since most peons arent capable of being more productive no matter how much they’re paid.
“Nonfarm productivity, a measure of output against hours worked, declined 7.5% from January through March, the biggest fall since the third quarter of 1947.”
If I’m understanding this definition correctly, productivity isn’t measured against compensation. So this isn’t about peons getting more money.
