What does the rise in commodities mean?
The rise of commodities means the rise of prices and the acceleration of inflation, because commodities refer to homogeneous and tradable commodities widely used as industrial basic raw materials, such as crude oil, non-ferrous metals, steel, agricultural products, iron ore and coal. Including three categories, namely energy commodities, basic raw materials and agricultural and sideline products.
In addition, rising commodity prices will drive the stocks of listed companies of these commodities to rise. For example, after the Spring Festival of 202 1, resource stocks such as coal, nonferrous metals, steel, copper and rare earth were constantly hyped. Mainly because the increase in demand stimulates the rise in commodity prices, and may also stimulate the rise in commodity futures prices.
There are several reasons for the surge in commodities: 1, and the global monetary liquidity is loose. 2. The supply side is tightening. 3. It is expected that the global economic recovery will continue to strengthen. The most intuitive feeling of ordinary people is that the price of products in life has risen, such as the price of vegetables.
After the rise of commodities, the state will carry out macro-control. After all, letting it continue to rise will lead to chaos in the whole society and the country must be stable. After reading the above introduction, I believe everyone can have a clearer understanding of what the rise of commodities means. The rise of commodities is a double-edged sword.