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Euro inflation, measured through commodity prices
submited on 05.06.2009 in category Monetary policy | Macroeconomic developments
submited on 05.06.2009 in category Monetary policy | Macroeconomic developments
One of the commodities used very often for determining the condition of markets and the purchasing power of a certain currency, is the gold and it has moved against that trend, rising by 18.5% in Euro prices to 680 Euros an ounce.
Crude oil’s price has fallen by 45.4% y-o-y to 44 Euros a barrel. Industrial commodities, such as Aluminum, Zinc, Lead, Copper etc. have lost on average 36.8% of their prices in Euro. For the same period industrial production in USA has shrunk by 12.5% according to April data, and in the Euro zone and Japan it has shrunk by 20.2% and 34.2%, respectively, for March data.
Economist Commodity-Price Index is an important factor because it acknowledges changes only in prices determined entirely by supply and demand, ignoring state-controlled prices. It is a more precise measurement of inflation of a currency than the consumer price indices are, because it is not affected by changes in productivity and cost of labor. Measured this way, inflation of a currency (the Euro, for example) is the same for different economies where it is used.
Download data in MS Excel:
http://iwatchbulgaria.com/pdf/pdf-open-eng.php?location=dollar-euro_commodity_indexes.xls
Crude oil’s price has fallen by 45.4% y-o-y to 44 Euros a barrel. Industrial commodities, such as Aluminum, Zinc, Lead, Copper etc. have lost on average 36.8% of their prices in Euro. For the same period industrial production in USA has shrunk by 12.5% according to April data, and in the Euro zone and Japan it has shrunk by 20.2% and 34.2%, respectively, for March data.
Economist Commodity-Price Index is an important factor because it acknowledges changes only in prices determined entirely by supply and demand, ignoring state-controlled prices. It is a more precise measurement of inflation of a currency than the consumer price indices are, because it is not affected by changes in productivity and cost of labor. Measured this way, inflation of a currency (the Euro, for example) is the same for different economies where it is used.
Download data in MS Excel:
http://iwatchbulgaria.com/pdf/pdf-open-eng.php?location=dollar-euro_commodity_indexes.xls
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