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Would Ben Bernanke react to increases in headline inflation due to commodity price increases if core inflation remained subdued?
They also note that the bump in underlying inflation due to commodity price hikes seems to be ebbing: As I pointed out yesterday, the same thing is true of the sticky-price CPI, which is arguably the conceptually closest thing to what we really mean by core inflation: So, terrible growth prospects; low inflation; oh, and low interest rates, with no sign of the bond vigilantes.
In small, open, mineral-export based economies, the economic growth of some medium sized cities is linked to cycles of boom and bust of export revenues due to commodity price volatility.
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Much of the increase is due to commodities related price hikes.
In gem-rich Angola, high-grade diamonds are reimported after being cut in Europe to adorn the fingers of local minerals magnates and their molls.Overall, though, only about a third of Africa's recent growth is due to commodities.
According to TradeTheNews.com, GM's third quarter also included expenses related to mark-to-market charges in the value of its commodity and foreign exchange hedging contracts, which were almost entirely due to falling commodity prices.
Mineral extractors have lost the most ground today, due to softer commodity prices.
Prices are volatile due to fluctuating commodity costs and intense competition.
The budget situation is deteriorating – largely because of the hit on revenue due to declining commodity prices.
Imports plunged 20.4% in September from a year earlier to $145.2bn, customs officials said, due to weak commodity prices and soft domestic demand.
Evans-Pritchard also said that import data had become unreliable given massive swings in prices due to the commodity downturn and a divergence between prices and trading volumes.
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