Commodity prices around the world are increasing, which increases the cost of inputs for the product. Higher prices for food, energy, services, and equipment are mainly due to increase demand from Asia and loose monetary system in the developed world. Demand for ethanol in gasoline, and higher transportation costs are also increasing the price of goods that have to be shipped to different locations.

Higher commodity prices affect the cost of inputs, which increases the end price for consumers. Higher consumer prices lead to lower revenue and margins for service producers and manufacturers.

What is a Commodity?

"Commodity Prices" has a significant impact, so an analyst should put more weight into it.