Uptick in commodity prices bears close watch

WHILE inflation, the silent thief of purchasing power, has fallen off its peak in most countries, it hasn’t come down to the targets set by the major central banks. This signals that the final stretch of the inflation fight may prove the toughest.

For that reason too, the uptick in the prices of commodities this year bears watching.

The energy complex, heavily weighted on oil, has outperformed all commodities so far this year. Heightened geopolitical risks – the most recent including further war flareups, with Russia’s missile and drone attack against Ukraine last week, and disruptions in the Red Sea – have sparked market fears over tightness in global oil supplies.