Not only the rise in US bond yields, but also commodity prices, for example, points to future inflation. “Commodities started 2021 with the expectation of an upcoming ‘supercycle’ that could get most of their prices to new historical highs. The economy is just starting to take off and the demand for industrial and agricultural commodities will continue to grow, “said Purple Trading analyst Štěpán Hájek.
US WTI crude rose 22.82 percent to $ 59.55 a barrel in the first quarter. Continued gradual growth will probably continue, however, further growth will be hampered by a stronger dollar and a potential slowdown in mining, Hájek added.
–
–
According to him, industrial metals such as copper are also growing. The reason is the increasing demand, especially from China. According to Hájek, economic expansion is returning to its original values very quickly, and a similar scenario can be expected in other world economies. At the same time, copper is being helped by governments’ efforts to reduce their dependence on fossil fuels, as this noble metal is a very important element in renewable energy systems.
A key factor in the inflation debate is the actions of central banks and governments to support coronavirus paralyzed economies. The distribution of cash and the intensive purchase of bonds are among the steps that have probably stimulated the rise in price increases the most. The exceptionally loose monetary policy has a significant effect on, among other things, real estate prices and the growth of stock indices to new highs.
–
–
Cryptocurrencies, led by bitcoin, also benefit from the policy of cheap money. However, according to some experts quoted by videography, fears of a massive rise in prices are exaggerated. The autumn forecast of the International Monetary Fund, for example, does not point to significant inflation either.
Recall how strong the economic recovery and inflation rate the IMF predicts for 2021:
–– .
