1. The BCOM (Bottom Market Commodity Index), which measures the price of a basket of commodities including energy, metals, and food, surged over 8% last month (highlighted in red). This strongly supports overall CPI and PPI data, which are heavily influenced by energy and food prices. However, its impact on core inflation data, which excludes these two commodities, is relatively smaller.
2. Due to the continued rise in commodity prices this year, especially the surge since the end of June, the impact of rising commodity prices will gradually spread to other sectors, potentially pushing up core inflation data, which is more closely watched by the Federal Reserve and other central banks.
