The Bloomberg Commodity Spot commodity price index fell to an eight-month low amid fears of a recession in the global economy.
The index, calculated on the basis of prices for a wide range of commodities – from oil and copper to wheat, on Monday fell by 1.6%, to a minimum since January 24. Its value has fallen by 22% from the peak level recorded in July. The rise associated with a jump in commodity prices immediately after the start of the Russian war in Ukraine has completely disappeared.
The continued strength of the dollar is making dollar-denominated commodities more expensive for overseas buyers, worsening demand prospects, Bloomberg said.
Experts see an opportunity for further decline in commodity prices, despite the fact that the supply of many commodities is limited. The unprecedented pace of raising key interest rates by world central banks, trying to contain the highest inflation in decades, raises fears of a recession in the global economy. The downturn, in turn, will worsen the outlook for energy demand and investor appetite for risk, economists warn.
