World Perspectives

Inflation Implications

Concerns about inflation exceeding transitory terms have increased in recent days but it was reported yesterday that inventories of consumer goods have started to increase, which will both boost GDP and temper prices. This follows increases in off-loading containers at east and west coast ports. Of course, commodities may be a hedge against inflation, but it is argued that the correlation between the two has declined over the years. But the correlation between the U.S. corn price and inflation increased from 2008 going forward (see graph below). Typically, the larger focus for U.S. owners of agricultural commodities is on the value of the dollar. Since 25 May, the dollar index has risen 5.3 percent.  It is still below the peak it hit...

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From WPI Consulting

Accountability and a comprehensive approach to export programming

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