Wednesday, November 6, 2013

Commodity Prices Are At Bay

Above is a weekly chart of the total commodities index.  While it is fairly dominated by oil, the other commodities are present in sufficient quantities to make the following point: there just isn't much commodity based inflation in the system right now.  And overall, that's a very good thing as it allows the various central banks to keep rates low as the world at large is still in pretty weak economic shape.