Declining commodity prices usually indicate demand for goods is dropping and the economy is in trouble.
Because the import number was inflated by commodity purchases, imports of consumer goods must have been stagnant, and there are some indications that domestic demand is indeed flat.
On the other hand, very little of that commodity cost seems to be getting into final goods prices.
And yes, even during the Great Depression can one find accusations of commodity market speculation for the unseemly rise in goods prices.
The markets of Yiwu cover 43 industries, 1, 901 commodity categories and more than 400, 000 types of goods.
It could help the global economy if commodity prices drop by freeing up consumers to spend on other goods and services.
FORBES: As Predicted in December, Commodity Bubble is Popping
And that matters, because oil is a critically important commodity whose price influences the prices of dozens of other important goods and services.
The gross profit margins (revenue minus the cost of goods sold) at other hardware makers have collapsed to commodity levels of 30%, but Cisco's have climbed to 70%.
As the cost consumers pay for goods remains subdued but input costs rise, pushed by commodity-cost inflation, input-price inflation has the potential to hit margins and thus profitability.
Though Unilever made public statements in March about impending price increases on its products due to rising commodity costs, the NDRC statement released Friday did not suggest Unilever colluded with other consumer-goods makers on prices.
Although the Fed may on its own go for another round of quantitative easing, higher commodity prices are beginning to flow through into growth-choking price increases in gasoline, autos, and other consumer goods.
FORBES: After Two Years Of Keynesian Stimulus, The Growth Deficit
应用推荐