Interestingly, a string of U.S inflation reports during the first three months of 2024 have all come in above estimates, fuelling concerns that inflation could prove more difficult to conquer than previously thought.
On top of that, economic growth during the first quarter unexpectedly slowed, rising at an annualized pace of just 1.6% – the weakest pace of growth since the second quarter of 2022 when the economy contracted.
Put another way, that’s a steep slowdown following a 3.4% gain in the fourth quarter of 2023 and 4.9% in the quarter before that.
That combination of economic stagnation and stickier-than-expected inflation is what’s known as “Stagflation”. According to data tracked by GSC Commodity Intelligence – Google searches of the term “Stagflation” are currently at the highest level seen in over two years. Which Leads Me to The Big Question:
Only time will tell. However, to quote analysts at GSC Commodity Intelligence – “regardless of whatever scenario plays out from here, it certainly won’t take much for Commodity prices to move significantly higher in this current economic environment”. That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.
