Price Volatility Making a Comeback

From the Economist:

Raw material prices rose by nearly 20% in May, according to the S&P/Goldman Sachs Commodity Index, one of the biggest monthly increases on record. The surge has been widespread, with everything from copper to cotton moving higher. Meanwhile the Baltic Dry Index, an indicator of shipping activity, has risen more than six fold from its December low.

What could counteract these rising commodity prices? Some experts believe there is adequate inventory and more than plenty of production capacity to hold down prices.

Here is the link:

http://www.economist.com/finance/displaystory.cfm?story_id=13788599&fsrc=rss