Ukraine crisis and inflation

Covid and its various strains showed the impact of globalisation and the butterfly effect in action. With the world becoming a global village, supply side disruptions caused their impact across borders and continents. The real face of capitalism emerged as producers stockpiled raw material and build reserves to ensure that the supply chain was not impacted. This added fuel to the fire and clogged the supply chain due to the unnatural jump in demand coupled with the already strained supply chain due to the reduced handling capacity at ports and staffing constraints. Inflation across the world is racing to peaks with the US inflation sprinting to a peak of 7.5%, euro zone and UK inflation at levels above 5% while locally we are facing inflation levels of over 13%. Commodity super-cycle seems not be taking a breather and has extended itself or may be converting into a bigger bull run. A fresh wave of stockpiling has started in fear of a disturbed supply chain in the face of escalating tensions between Russia and Ukraine. Commodity prices have restarted their race towards new highs and Brent crude oil has comfortably settled above $96 a barrel and is on track to cross into three digits to levels seen around eight years ago (in September 2014).