this post was submitted on 31 May 2024
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I think you wildly misunderstood what the other commenter was trying to get at, namely that you are trying to extrapolate a gobal and relatively volatile value of a single material to the scale of the entire gobal economy. If for instance a major mine was forced to shut down then you would see a major increase in the price of gold, but no change to the economy as a whole outside of a small fraction of the aforementioned change making its contribution to the outputs of a few niche industries.
Moreover if a commodity can work as a pure measure of inflation in the economy then we would expect the gobal price index of all commodities to provide a more accurate measure, right? Actually doing that relative to USD however actually shows minor deflation since Q3 2023, which itself saw a whopping 30% deflation between 2022 and 2023.
Given these numbers do not seem at all indicative of my personal or observed change in the average price of goods and services across the entire economy, it would seem that commodity prices don’t have a significant direct correlation with inflation.