What the 7 C's of Commodities Signal About Inflation
Peter Borish asserts that the seven C's of commodities—coffee, corn, cotton, copper, crude oil, cocoa, and cattle—are essential indicators for understanding inflation trends and stock market shifts. Despite a decrease in inflation from its peak in 2021, recent price hikes in several of these commodities suggest potential inflationary pressures, with notable increases in coffee and corn prices. Borish emphasizes that while fluctuations in individual commodities may occur, a simultaneous rise across all seven C's could indicate a significant uptick in inflation that warrants careful monitoring.
- This perspective highlights the interconnectedness of commodity prices and inflation, suggesting that investors should pay close attention to these indicators for making informed decisions.
- In what ways might changes in global supply chains further influence the dynamics of the 7 C's and their impact on inflation rates?