arshad5

With the oil prices on the decline or at least to have peaked, as well as some other commodities, has inflation peaked and how will the market respond?

ehtasab

The problem is not just the oil price, US is hovering around recession; higher oil prices pushed US economy into the recession. Though short term profits might rise for retailers as the actual cost will now be lower while consumers will still pay raised prices, but after one or two quarters they will again have losses or lower profits/sales IMO. Therefore market may rise for short term but will again be on decline atleast till next year (mid?). Thats my 2c.

ehtasab

Inflation jumps to 17 year high, we may see one more jump before it starts to come down.

Consumer prices surge, job market remains strained: Financial News - Yahoo! Finance

ehsan

Inflation has not peaked yet. even though the price of oil has fallen recently the price rises take sometime to work their way through, so expect inflation to bump up for a few more months before it stabilises.

Words of Quaid

Is it true inflations is almost over 25%?

ehtasab

Yes, almost, Pakistan's last inflation reading was 24.33 Bloomberg.com: India & Pakistan

ehtasab

Wholesale prices rising at fastest pace since 1981: Financial News - Yahoo! Finance

May be we'll see another jump in the inflation recording (hopefully not) before it stops going up.

arshad5

The chairman of the US Federal Reserve suggested that the Fed thinks global inflationary pressures could be starting to ease. Mr Bernanke said the change in oil prices, as well as weak growth, “should lead inflation to moderate this year and next”.

I think the worst seems to be over although it may take a while for the inflation to work its way through the system before it starts declining.