Scotiabank’s Commodity Price Index jumped by 4.1% month-over-month (m/m) in July. Despite considerable month-to-month volatility, the All Items Index has edged up by 1.2% year-to-date (YTD) over the previous seven months and is currently 6.3% above a year earlier.
“While it is too early to say that commodity prices have bottomed, the correction since April 2011 could be largely over later this year,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist. “The downturn since the Spring of 2011 has been linked to an austerity-led recession in the southern euro zone, a sub-par U.S. economic recovery and new mine supply coming on stream in a lacklustre global economy. The euro zone’s real GDP rose by 1.1% annualized in 2013:Q2, ending six consecutive quarters of contraction, and signs point to a moderate pick-up in the United States.” (Press Release)