Commodity prices soar, will the "second wave of inflation" come to the U.S.?

Figure 1 shows that the surge in the commodity index has begun to raise questions: Are we in the early stages of an inflation recovery? As Goldman Sachs' Priovolotski pointed out a few weeks ago, such trends typically signal a broad depreciation of the dollar or a rapid recovery in global economic growth. Figure 2 shows a stark contrast between the rise of the U.S. stock inflation sector (white line) and inflation-linked bonds (blue line); the historical comparison in Figure 3 shows the current U.S. inflation cycle compared to that of the 1970s