Commodities prices have fallen to a level prior to the Russia-Ukraine conflict.

During the 1970s when the world is facing stagflation, commodities are the asset classes that perform the best. Crude oil, precious metal, and grain had charted better price performance than real estate, the stock market, and the bond market. Silver prices perform better than gold during this era.

We had been looking at oil prices to guess our inflation rate. However, one must be aware that the US has been selling tonnes of oil in the market from its strategic petroleum reserve inventory.

Could the oil prices rebound after US' quadrennial presidential election in early November once the US stops dumping so much oil into the international market?

The world is getting older as the birth rate falls, which means labor costs are higher. Many companies are declaring more dividends to their shareholders instead of expanding their capacity.

A higher interest rate could induce a recession and reduce the inflation rate by dampening the demand. However, things wont change unless all the companies start producing more.