I'm still looking for the article I read this morning but the beginning of this one provides a pretty good summary of the recession concern. I often run into a paywall with the WSJ but was able to read this one.
"A surge in commodities prices around the globe is stirring worries about higher inflation alongside lower economic growth.
Brent-crude futures, the international benchmark, rose 6.8% to $112.12 a barrel on Wednesday, extending their advance so far this year to 44%. Wheat prices have surged to the highest level since 2008. Aluminum and nickel prices have risen, too.
Climbing commodity prices are the latest wildcard for investors at a time when inflation has already been
hovering at a 40-year high. Now, some analysts are warning that economic growth could slow at a time when prices are ripping higher. This happened in the 1970s, when a combination of lower economic growth and higher inflation, or stagflation, weighed on stock returns.
“Russia/Ukraine increases risk of stagflation” and a central bank policy mistake, wrote Bank of America analysts in a recent note to clients.
Analysts at Fitch Ratings warned Tuesday that inflation could remain high throughout the year, weighing on the global economy and increasing the risk of a recession."
A surge in commodities prices around the globe is stirring worries about higher inflation alongside lower economic growth. Brent-crude futures, the international benchmark, rose 6.8% to $112.12 a barrel on Wednesday, extending their advance so far this year to 44%. Wheat prices have surged to the h
www.wsj.com
www.cnbc.com
