Headlines on the inflation front were bleak this week with the consumer price index accelerating by 9.1% in June, the largest increase since 1981. However, if you look more closely at some of the underlying data, a more nuanced picture is painted where prices are beginning to fall across a variety of markets.
In looking at the five charts below, we may be seeing trend emerge. The prices of oil, corn, copper, and wheat have all fallen sharply recently while interest rates have also declined substantially.
Crude Oil is down 19% since June 7th
Corn is down 26% since April 29th
Copper is down 35% since March 4th
Wheat is down 40% since March 7th
10 Year Treasury yields have dropped from 3.48% on Jun 13th to 2.92% today, a 16% drop.
When everybody thinks they what is going on in markets is typically when they reverse course. Perhaps that is happening now?
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