Taps Coogan – September 7th, 2022

Enjoy The Sounding Line? Click here to subscribe for free.

It’s not much, but the spike in global food and fertilizer prices has started to roll over, as the following chart from Jeroen Blokland highlights.

Fertilizer and food join oil, copper, rare-earths, and many other commodities in backing off of eye-watering highs in the past months. While still dramatically higher than during the 2014-2020 era, commodities are a leading indicator of inflation, reinforcing the probability that headline and core inflation will continue to trend lower in the near term. Of course, getting back to 2% inflation is still not in the cards and a particularly cold winter in Europe could re-ignite the commodity rally.

Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.