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Commodities slump sends slow ripples through world economy-prices of everything falling


As seen above, Rogers commodity index is falling since 6 months. It is composed of Energy, Agriculture, Metals
See details at http://en.wikipedia.org/wiki/Rogers_International_Commodity_Index

Chart from:  http://www.bloomberg.com/quote/RICIGLTR:IND/chart
 
* Consumers to gain slowly but surely from commodity rout
* Disinflation gives even more leeway(Margin of safety) to central banks
* Exchange rates, premium pricing models limit pass through
* India, China among gainers; Australia's luck may run out
LONDON, April 21 (Reuters) - Lower airfares, cheaper food and rising profit margins are among the benefits that should flow from tumbling oil and commodity prices - but only after a long lead time.
Having poured $400 billion into commodities over the past decade, many investors are now selling. Their confidence that risky assets could only float higher on a rising tide of cheap central bank money has crumbled as the global economy fails to respond to the stimulus.
Even China, an important buyer of natural resources, is slowing. Inflation, against which gold in particular is a classic hedge, is falling nearly everywhere.
Price pressures will ease further if natural resources keep falling. That is bad news for exporters such as Saudi Arabia and Brazil but good news for net importers.



http://www.cnbc.com/id/100658472

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