Commodity price surge deals stagflationary blow to world economy

Rising costs for households and companies are hitting confidence while pushing inflation faster than economists had expected only a few months ago

The world economy is facing a buildup in stagflationary forces as surging energy prices boost inflation and slow the recovery from the pandemic recession.
 

Oil’s climbed to more than $80 a barrel for the first time in three years, natural gas for October delivery traded at the costliest in seven years and the Bloomberg Commodity Spot Index rose to the highest level in a decade. 

Food prices are also advancing, driven in part by crop failures in Brazil, with a benchmark UN index up 33% over the past 12 months.

Rising costs for households and companies are hitting confidence while