07.08.2008 - From bull to bust: Tracking the plunge in commodity prices, and what it may mean for U.S. inflation
From latimes.com: "The committee expects inflation to moderate later this year and next year," Federal Reserve policymakers said in their post-meeting statement. We've heard that before, but this time the Fed's optimism may be borne out: Commodity prices, which helped stoke the inflation fires over the last year, are continuing to deflate. The steep slide in oil prices during the last month has gotten the headlines, for obvious reasons. Oil futures, which slipped 59 cents to $118.58 a barrel today, are down 18.4% since peaking on July 3 at $145.29. Commodsaug6 But take a look at the accompanying chart. Natural gas has plunged nearly twice as much as oil since July 3, down 35.4%. Corn is down 32% in the same period. Soybeans have tumbled almost 25%...... Full Article: Source
Print