General commodities question General, directly, countries, question, emerging

adehbone

Storable commodities like oil are directly correlated to inflation, but not perishable commodities like agrictural commodities. But typically in developing (emerging) countries, the cost of food and grains is increasing with inflation - maybe I am missing some simple concept?

cityboy

manishsd Wrote:
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> Storable commodities like oil are directly
> correlated to inflation, but not perishable
> commodities like agrictural commodities. But
> typically in developing (emerging) countries, the
> cost of food and grains is increasing with
> inflation - maybe I am missing some simple
> concept?

Inflation is caused by increasing prices for foods,grains, other consumer products (Effect and cause).

The idea presented in commodities with regards to food and grains is whether these products are good inflation hedges.

Iginla2011

I had the same question but just follow CFAI