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These 3 Charts Indicate That Inflation May Be Peaking

ByChris Kimble
Published 12/21/2021, 04:51 PM
Updated 07/09/2023, 06:31 AM

Over the past 18 months, I’ve penned several articles about traceable commodity breakouts, rising commodities prices, and inflation risks.

With each breakout came more inflation pressures. And today, we continue to battle high energy, food, and housing prices.

But what if I told you there was a chance that inflation is peaking. Crazy right?

Well, today’s chart 3-pack highlights important commodity price indices that may be peaking: the Baltic Dry Index (shipping costs), the Equal Weight Commodity Index, and Cattle prices. Note that these are all long-term “monthly” charts.

Baltic Dry, Equal Weight Commodity, And Cattle Monthly Charts.

Sign of Inflation Peaking?

All 3 indices have returned to key Fibonacci resistance levels. The Baltic Dry Index reached its 50% Fibonacci retracement at (1) and turned lower (to the turn of 50%). And the Commodity Index and Cattle could be peaking out at (2), also key Fibonacci retracement levels.

If resistance holds for commodities, then there is a good chance that prices will stop rising in the months ahead. Keep an eye on these indices. 

Latest comments

And just a few months ago when lumber futures went below 500 analysts yelled from the roof tops of unfinished houses that the lumber "inflation" was over. Was it?? I see lumber futures are over 1000 again. This article and the fed saying 2022 inflation will be less than 3 percent all on its own is just the new way to say "transitory".  What I have learned over the last two years reading various fib followers is that things like fib levels and wave analysis (while useful as a tool) means you never have to say you were wrong.
Not a chance.  The full money dump hasn’t even started to show up in the economy
😂😂😂😂😂. Yeah, right
Brrrrr
continued labor shortage will keep wages rising, thus prolonged inflation
We hope so but we've been saying this for 10 months now.
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