Commodities inflation just taking off on a long flight

The world is currently facing some of the most challenging financial markets seen in the last few decades. The subprime crisis and its fallout has helped tip the US into a recession that may have a serious impact on global growth for some time. However, the turmoil surrounding the commodity markets has, until recent weeks, been largely unnoticed and yet events in these markets have the potential to have a far greater global impact than a slow-down in the US. Over the last 24 months most commodities have witnessed enormous price appreciation as world demand for fuel, raw materials and food has exploded. The price pressures behind the rise in oil prices are well documented and attributed to increasing demand from the emerging markets, notably China and India. Base metals have also benefited from the same demand pressures as emerging economies invest in their infrastructure by building new railroads, airports