Falling Commodity Prices Could Mute Inflation Risks from Trade Tensions
you are currently viewing::Falling Commodity Prices Could Mute Inflation Risks from Trade TensionsApril 29, 2025--Overview
The decline could moderate near-term inflation risks emerging from rising trade barriers, but it could also hamper prospects for economic progress in two out of every three developing economies. Global commodity prices are expected to tumble 12% in 2025, and an additional 5% in 2026, falling to levels not seen since 2020. In nominal terms, prices would still be higher than they were before the start of the pandemic. Adjusted for inflation, however, they are likely to fall for the first time below the average that prevailed from 2015 through 2019. That would mark the end of a boom fueled by the global economy's rebound from the COVID-19 pandemic and Russia’s invasion of Ukraine in 2022. Source: worldbank.org |
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March 15, 2026-Global stocks continued to weaken last week, as the ongoing war in Iran kept oil prices high.
Oil prices have surged as the Iran conflict disrupts global supply, adding to inflation risks. At the same time, recent RBA commentary has sharply shifted market expectations- with investors now bracing for a possible rate hike this week.
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Brent oil prices surged over 28% to above $92 per barrel due to supply concerns. The U.S. responded by offering naval escorts and easing Russian oil sanctions on India to stabilize markets.
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Wilshire Indexes, the dedicated index operations arm set up by US asset manager Wilshire to run its growing index portfolio, as well as index operations of its partner parent groups, has closed.
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Government borrowing accounted for over $10 trillion of the increase, led by the United States, China, and the euro area.
Emerging markets saw debt ratios rise above 235% of GDP, while advanced economies saw a slight decline in debt-to-GDP ratios.
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