The world is on the brink of rapid economic growth amid the roll-out of Covid vaccinations and massive government and central bank stimulus. This has brought the spectre of inflation edging back into the thoughts of policy makers after over a decade in the shadows. Recent consumer price readings look dramatic compared with a year earlier, although are unlikely to trigger policy changes this early in the recovery. But the fear of inflation is enough to drive investment decisions, and commodities are a traditional refuge for those seeking to protect their assets from devaluation. There is little evidence that an influx of inflation hedgers into commodities is having a material impact on oil price direction.
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