Inflation is all set to reduce in India and all across the world, and this respite from high prices will come to stay for a long period of time. According to a report from the World Bank, the rates of almost all the commodities like crude oil, natural gas, grains, edible oil, cotton, and metals, will go down by 15% in the year 2023. After which, in 2024 as well, the rates of the same are expected to drop by 12%. This year, the biggest role in inflation was played by crude oil and natural gas. The next year, their prices will drop the most.
As per Indian commodity experts, the international benchmark of crude oil, Brent Crude, can drop down by 17% to 75 dollars per barrel, which is currently at around 90 dollars. By June 2023, a 12-15% downfall is also expected to be reached in the rates of edible oil.
A number of major factors will be responsible for the reduction of commodity prices. Firstly, Ukraine has a large stock of sunflower oil, and the farming of mustard has augmented in India, and in the palm oil exporting countries, the lack of workers is disappearing. Secondly, in India, the production of grains has been increasing year after year. In the Rabi season, wheat production can increase 10-15%, and maize production is also expected to hike. Thirdly, cotton production is expected to increase by 8.5%, along with the chances of production getting better in the USA as well. This can lead to the reduction of cotton prices.
Also, the demand will get reduced due to the sluggishness of the global economy. On the other hand, COVID-19 restrictions in China are increasing yet again, and this will also lead to a downfall in prices.
