Commodity prices have been on a downside in recent weeks as fears over recession that would slowdown demands take over tight supply in commodity markets caused by the war between Russia and Ukraine, following the sanction by European countries against the Kremlin.
Main indicators such as oil prices had fallen from around $120 per barrel in June to below $100 level last week for this reason, fueled with concerns over rising Covid-19 cases in China that could potentially lead to another lockdown as the world’s second-largest economy is still pursuing its zero-Covid policy.
The International Monetary Fund (IMF) stated that commodity prices such as oil that seem to be slowing down in recent weeks were due to recession risks, which was not necessarily because inflation has been tamed.
Kristalina Georgieva, managing director of IMF expected rate hikes will likely keep rising until 2023 when red-hot consumer prices will begin to cool in response to the measures from central banks.
“At the moment we still see inflation going up; we have to throw some cold water on it,” Kristalina Georgieva told CNBC at the G-20 meeting in Bali last Friday, saying that central banks must maintain its pace in controlling inflation until it is clear that inflation expectations remain firmly anchored.
