goods. For example, inflation in intermediate goods prices rose from 2.6 percent annually in the first half of 1994 to 7 … less than 3 percent. Many analysts are concerned that recent increases in the prices of crude and intermediate goods may be … expected to move through the production chain, leading to increases in consumer prices. A review of basic economic theory …

The recent surge in commodity prices has rekindled interest in their power to predict consumer price inflation. But is … this interest warranted? In examining the empirical relationship between commodity prices and consumer price inflation …