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Market, Corporates and Central Banks’ View on Inflation
A couple weeks ago, very few people were contemplating a tapering of bond purchases by the Fed, but that changed after US CPI data exceeded expectations and the most recent FOMC minutes indicated that tapering-related discussions have already begun. Ground zero for the inflation narrative tends to focus on the surge in commodity prices: • The year-on-year change in the Refinitiv Core Commodity Total Return Index is at its highest level in 25 years. • As Jason Goepfert from Sentiment Trader said: “When we look at major commodity contracts and measure the percentage of them with a 252-day rate of change of 50% or ... (full story)