The impact of rising commodity prices

graeme at 5:04 p.m. Tue 23 Feb 2010

Henderson New Star’s Money Moves Markets blog has some graphs and numbers on the large (20%) expected increase in British manufacturers input prices as a result of the 55% gain in sterling terms of commodities.

The post suggests that sterling is weak enough, and demand is recovering strongly enough, for manufacturers to pass these price increases on. In terms of the effect on domestic inflation, this cannot be good, but it is worth bearing in mind a few factors that offset the effects of input price inflation, as well as some likely consequences:

From an investor’s point of view, this needs to be applied at the industry and company levels.

We need user contribution, so please suggest stories/links


You need to login or register to comment