Crowded Out; Commodities  

Oleh:

[s.n]

Jenis: Article from Bulletin/Magazine
Dalam koleksi: The Economist (http://search.proquest.com/) vol. 400 no. 8752 (Sep. 2011), page 17-18.
Topik: Commodities; Price Increases; Supply & Demand; Trends; Statistical Data; Global Economy

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Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.68 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Today Brazil's main customer is China, which takes 15% of its exports (mostly iron ore, soyabeans and oil), up from almost nothing ten years ago. The cargo that the ships are queuing up for at Tubarao has become far more valuable. Iron ore now fetches $178 a tonne, compared with $13 a tonne in 2001. Broader measures of raw-material costs have jumped as well. The Economist's index of non-oil commodity prices has trebled in the past decade. The surge in commodity prices is simply the result of exploding demand and sluggish supply. The demand side has been boosted by industrial development unprecedented in its size, speed and breadth, led by China but not confined to it. Growth in emerging markets is both rapid and resource-intensive. Supply has struggled to keep pace with this burgeoning demand. The world's iron-ore production has doubled over the past decade but prices have risen 13-fold. The supply of commodities is again slowly catching up. Because of the persistent rise in commodity prices, inflation has not come down even though there is lots of slack in most advanced economies. The textbook response to commodity-led inflation is to regard it as temporary and ignore it. But that becomes harder if it persists and raises expectations of future inflation.

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