Adding some more information to the inflation/deflation debate, The CRB Raw Industrials index is just 3% from an all time record high. The index includes copper scrap, lead scrap, steel scrap, tin, zinc, burlap, cotton, print cloth, wool tops, hides, hogs, lard, steers, tallow, butter, soybean oil, corn, wheat, and sugar. The Journal of Commerce Index of 18 industrial materials is just shy of its highest level since mid May and 15% from its record high and the CRB index is at a one month high, 7% from the highest level since Oct ’08 but remains 42% off its record high in July ’08 when crude oil was at $145.

Category: MacroNotes

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2 Responses to “Inflation/Deflation, at least in commodity land”

  1. ashpelham2 says:

    So, as we suspected, there is deflation in the things we own, and inflation in the things we need. Unless of course, you own a large storage facility full of wool tops, hides, lard, tallow, burlap, or lead scrap.

  2. JustinTheSkeptic says:

    Is that enough to overcome the massive amounts of debt that need to be written off? Higher commodity prices only mean a further fall in prices once sharpe falls in consumer demand are noticed. (Or finally have to be reported without any government or industry gimmicks). How much of the rise in commodities (hard assets) is fear driven and or Goldmen types pumping the prices?