Analyze the Impact of International Commodity Prices on Inflation

Yifeng Wang

doi:10.54254/2754-1169/50/20230558

Research Article

Open access

Published on 1 December 2023

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Wang,Y. (2023). Analyze the Impact of International Commodity Prices on Inflation. Advances in Economics, Management and Political Sciences,50,84-90.

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Analyze the Impact of International Commodity Prices on Inflation

Yifeng Wang *^,1,

¹ College of Economics, Capital university of business and economics, Beijing, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/50/20230558

Abstract

With the development of globalization, the fluctuation of international commodity prices has an important impact on the global economy. By examining price data for major commodities such as crude oil, soybeans, copper, and gold between 2018 and 2023, and exploring the transmission mechanism to inflation in different countries, we attempt to uncover the nature of this effect. By analyzing the transmission path of commodity prices to inflation, we delve into how these commodity price fluctuations affect inflation levels in different countries.This article find that its price fluctuations tend to cause a chain reaction around the world, which has an important impact on inflation. However, we also recognize that the impact of international commodities on inflation is subject to a combination of many factors. Domestic economic conditions, the flexibility of monetary policy, the balance of supply and demand in the market and other factors also have an important impact on inflation. Therefore, in this study, we try to consider these factors in order to explain the formation mechanism of inflation more comprehensively. In the future, we recommend paying closer attention to the dynamics of international commodity markets and their complex relationship with inflation to better address global economic challenges.

Keywords

international commodity, inflation, price index

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Cite this article

Wang,Y. (2023). Analyze the Impact of International Commodity Prices on Inflation. Advances in Economics, Management and Political Sciences,50,84-90.

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About volume

Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Conference website: https://www.icftba.org/

ISBN：978-1-83558-147-6(Print) / 978-1-83558-148-3(Online)

Conference date: 8 November 2023

Editor：Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.50

ISSN：2754-1169(Print) / 2754-1177(Online)

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