Once upon a time

Here is a comforting story, widely believed by investors. The demon Inflation, long thought to be chained to the rock of sound monetary policy, somehow managed to capture the fair maiden Commodity Prices. But then a rather shambolic knight, Sir Slow Economy, came to the rescue. Commodity Prices fell into a swoon, Inflation will soon be chained back, and King Central Bank will throw a rate-cutting party. Commodities have certainly been the main source of inflation. In the US, the overall inflati...