– Commodity Index Hits Highest In Year As Sticky Inflation Becomes Nightmare For Fed :
About a month ago, HSBC Global Research noted a forecast for a “weak” bull market in commodities. New data shows that the US Consumer Price Index (CPI) for April rose by .3% from the previous month and by 3.4% year-over-year. Although inflation is still increasing, it is doing so at a slower pace. Meanwhile, in Asia, Beijing is working to stabilize its economy. Amid these developments, commodity prices, tracked by Bloomberg, have reached their highest level in a year. This poses a serious threat for Fed Chair Powell’s efforts to combat the inflation monster. The persistent elevated inflation is due to the US Treasury spending like it’s in a ‘Great Depression’, which amounts to approximately $1 trillion every 100 days.
Given all of this, the Bloomberg Commodity Spot Index — which tracks 24 energy, metal and agricultural contracts — moved higher by nearly one percent on Wednesday, tagging the highest level since April 2023.
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