Commodity Costs Are Rewiring How Inflation Actually Spreads

Commodity price inflation is spreading further than it used to, with energy costs now feeding food and core inflation for far longer than before. David Scutt, StoneX Media Senior Market Analyst, walks through how energy and agricultural prices move into realized inflation, and why those relationships now last three and four quarters instead of fading. Soft commodities including coffee, cocoa, sugar and cotton have climbed sharply since February, with weather, crop conditions and El Niño talk sitting alongside a factor that gets less attention, energy. Energy costs are embedded across the agricultural supply chain, from fertilizer and machinery through to transport, processing, refrigeration and distribution, and since 2020 Brent crude and the Bloomberg Agricultural Index have moved far more closely together. The same shift shows up in U.S. food inflation and core CPI at nine and twelve-month lags, which matters because the pandemic, the war in Ukraine and a Middle East energy shock have arrived in succession rather than in isolation. Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_david_scutt&utm_content=share 00:00 - Cheap Energy Era Runs Out 00:31 - Softs Surge Beyond Weather 01:04 - Brent and Grain Move Together 01:33 - Food Inflation Lags Run Long 02:31 - Core Inflation Picks Up Crude 03:42 - Demand Is All Policy Touches Like and subscribe for more financial market insights. #CrudeOil #Inflation #StoneX #DavidScutt