Research Briefing

A greener economy won’t lead to 1970s-style inflation

Global | A greener economy won’t lead to 1970s-style inflation

The transition to a greener economy through changes in government climate policy, technology, investment, and consumer preferences will fuel huge demand for key raw materials and may create inflationary threats in the economy.
However, given the decreasing role of commodities in determining inflation over the past few decades, the expected supply response to currently elevated commodity prices, and generally well anchored inflation expectations, a shift to persistently higher inflation via this channel is unlikely in the near-term.
What you will learn:

  • Pandemic supply constraints and financial speculation are also at play
  • Over the next few years, green commodities are also likely to reflect a fraction of commodity consumption
  • Also, several factors that have led commodities to play a smaller role in the economy
Back to Resource Hub

Related Services

Flags of US and Canada

Post

Trump’s tariffs on Canada would raise regional commodity prices

A blanket 25% tariff on Canadian imports to the US could have a significant impact on commodity prices, squeeze profit margins of Canadian exporters and raise prices for US end-users.

Find Out More

Post

Chinese policy is unlikely to shift due to announced tariffs

US President Donald Trump's announcement of an additional 10% tariff on imports from China was in line with our baseline expectation. But the immediacy of implementation, the blanket style of tariffs, and the inclusion of stronger language around retaliation in policy documents still add significant uncertainty to our forecasts.

Find Out More