'Inflation Is Back:' Commodity Prices Hit Highest Level In More Than A Decade

Commodity prices are surging globally, reigniting inflation concerns as the Bloomberg Commodity Index climbed to its highest level in more than a decade.

Inflation is Back

According to an X post by The Kobeissi Letter on Wednesday, the Bloomberg Commodity Index rose to 141 points, surpassing the peak reached during the 2022 energy crisis and marking its highest level since February 2013.

Commodity inflation is surging:

The Bloomberg Commodity Index is up to 141 points, the highest since February 2013.

This index tracks 25 exchange-traded futures contracts across energy, metals, and agriculture.

Energy accounts for the largest weighting, at 39%, followed by… pic.twitter.com/RcAV7ClviG

— The Kobeissi Letter (@KobeissiLetter) May 6, 2026

The index, which tracks 25 exchange-traded futures contracts across energy, metals and agricultural commodities, has gained 28% year-to-date. The letter warned that "Inflation is back."

The 5-year breakeven inflation rate recently reached 2.72%, the highest since August 2022, while the 10-year breakeven rose to 2.50%, the highest since March 2023.

The letter said, "Commodity prices are now on track for their first annual increase in 4 years."

A widening conflict in the Middle East is set to trigger the global commodity surge, with broad implications for inflation, growth and financial markets, according to the World Bank Group.

Energy Leads Commodity Rally

Energy remains the largest component of the index, accounting for roughly 39% of the weighting. This was followed by agriculture at 27%, precious metals at 16%, and industrial metals at 13%.

The World Bank projects energy prices to increase 24% this year, marking the steepest increase since the fallout from Russia’s invasion of Ukraine.

US-Iran Deal Hopes Trigger Wild Swing in Oil Prices

Energy markets are experiencing extreme volatility. Nearly $920 million in crude oil short positions were taken shortly on Wednesday before an Axios report hinted at a potential peace deal between the U.S. and Iran, causing prices to plummet more than 12% within hours, potentially generating an estimated $125 million profit for the short position.

Then, oil prices bounced back and surged 8% on the day after the reports emerged that Iran had launched the “Persian Gulf Strait Authority.”

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.

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