Commodities surged after invasion, now many are cheaper than before the war

Commodity prices on global markets surged a year ago in response to Russia’s invasion of Ukraine, but the situation stabilised over the course of the year and many are now below pre-war levels. Bloomberg’s commodity index, which tracks the prices of the 24 most-traded commodities, rose 22 percent in response to the war. On the conflict’s first anniversary, it is down five percent, XTB analyst Jiří Tyleček told the Czech News Agency (ČTK).

„Several factors are behind the decline. Alongside the fading effects of the war and the market’s adjustment, the slowing global economy is playing an important role. The reopening of China, which is quickly abandoning its zero-COVID policy, is having a positive impact on commodity markets. We should also remember that commodity prices rose in anticipation of the conflict. At the start of the war, some commodities were already significantly more expensive than in the preceding months,“ Tyleček said.