Are We On The Cusp of Another Decade-Long Commodity Supercycle?

Over the past year, a wide number of Commodities from Copper, Palladium, Iron Ore, Lumber to Uranium have skyrocketed to record breaking highs. Now Natural Gas and Oil Prices have joined them, challenging the view that inflation is transitory.

Central bankers, while adamant inflation will subside, are starting to concede it may stay higher for longer as a range of issues push up the prices of goods and services and lift future inflation expectations.

Last week, Federal Reserve Chair Jerome Powell said that inflation could persist for longer than expected as reopening pressures and supply chain problems continue to converge.

On the inflation front, the U.S Federal Reserve’s favourite measure of inflation climbed to 5.3% in August, its highest level in 30 years.

Just like the United States, nearly every economy around the world right now, is experiencing uncontrollable inflation.

Canada’s annual inflation rate hit 4.1% in August, its highest level in 18-years.

On the other side of the pond, UK inflation topped 4% last month, its biggest jump since 1997. While Eurozone inflation hit a 13-year high of 3.4%.

Economists now forecast that global inflation could reach double-digits ahead, which ultimately paves the path for a multi-year, potentially decade-long Commodity Supercycle.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: