In This Chapter
Why oil is a special commodity
How oil futures hint at where prices are headed
The EIA Petroleum Status Report
Commodity price indexes
Why gold doesn’t always glisten
We’ve talked about the major indicators of inflation, such as the Consumer Price Index, the Producer Price Index, and the Productivity and Costs Report, among others. But what is the part of the economy that is most sensitive to changes in inflation pressures? Commodities—that’s what!
Tracking commodities can provide early inflation warnings. In this chapter, we take a close look at two special commodities: oil and gold.
First, just what is a commodity? Generally, a ...