10.10.2014 - Commodity free fall
The International Monetary Fund (IMF) expects commodity prices to decline till 2019 across fuel, metal and agricultural products. It expects inflation in emerging markets to decline due to softening prices, especially of food. That will be good news for India. Low energy prices will mean a lower current account deficit for the country. Low inflation can mean lower interest rates, lower costs for producers and more money with consumers, leading to better corporate earnings growth. Nevertheless, IMF also cites the risks of oil prices rising due to geopolitical conflicts in Ukraine and the Middle East. And producers such as farmers and metal companies may feel the heat, and if they cut output, these projections will be at risk...............................................Full Article: Source
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