Wednesday, August 8, 2012

Citi's Fitzpatrick: Commodity Inflation Will Hurt The US, But It Will Crush Europe


BusinessInsider reports: There is concern that the recent drought will lead to a massive spike in inflation, as Citi technical analyst Tom Fitzpatrick said in an interview with King World News.
He uses two charts to forecast the likely inflation that will occur due to the drought: Brent Crude and the DJUBS Grains Index. Both charts point to very high prices in the near future, as the DJUBS Grains Index has already risen 38% in the last eight weeks and a steep rise in crude prices as well.

"The combination of these charts is very concerning. While the US would also be susceptible to this drag there are a number of things which would suggest that this dynamic would hurt Europe much more," said Fitzpatrick….

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