So far last year, commodity markets have experienced a “V” shaped reversal. After the outbreak of the epidemic, commodity prices once fell to the bottom, and then with the help of a series of stimulus policies, the crude oil market led commodity prices to rise gradually. As the global economy continues to recover, the recent strong rise in commodity prices has also pushed up global inflation expectations.
The rise in commodity prices mainly reflects the improvement in the global epidemic prevention and control situation. The basic containment of the epidemic in the world’s major economies, such as China, the United States and Europe, has laid the foundation for the global economic recovery and provided support for the recovery of global demand.
Since this year the London copper futures rose by more than 35%, which leads to the copper as the main raw material of the wire and cable, plug and power cord prices keep rising, enterprise operating costs continue to rise, had to raise prices to avoid losses, we expect the price of raw materials will also continue to rise.
Looking around the world, different countries and different economic sectors are not recovering at the same pace, which leads to the asymmetry of economic recovery. The epidemic in commodity exporting countries is still relatively severe, affecting the global supply of commodities, and there is a mismatch between supply and demand between different sectors of the global economy. This is the most fundamental reason for the rise in global inflation expectations.
Post time: May-14-2021