Commodities, Supply-chains and Structural Changes in Demand

Source: Cobden Centre
by Colin Lloyd

“As the spectre of inflation begins to haunt economists, many market commentators have started to focus on commodity prices in an attempt to predict the likely direction of the general price level for goods and services. This indexing of the most heterogeneous asset class has always struck me as destined to disappoint. Commodity prices change in response to, often, small variation in supply or demand and the price of some commodities varies enormously from one geographic location to another. Occasionally the majority of commodities rise in tandem but more frequently they dance to their own peculiar tunes.” (07/12/21)

http://www.cobdencentre.org/2021/07/commodities-supply-chains-and-structural-changes-in-demand/