The revival of the world’s second largest economy — and its biggest consumer of commodities — threatens to push up global prices for fuel, industrial metals and food this year. Since the beginning of January, prices for copper, aluminum and zinc have all had their best start to a year in 11 years, rallying by an average of 13%, analysts at Deutsche Bank told CNN, citing data from the London Metal Exchange.
US gas prices have already climbed 40 cents a gallon in a month, partly because of the rise in crude prices since early December. Rising oil prices could help push up global inflation — or at least keep it elevated — just when consumer price rises have shown signs of moderating, tempering hopes by businesses and investors that the world’s central banks may soon be done raising interest rates.
Weren’t supply issues causing inflation?
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