The IHS Markit Materials Price Index (MPI) has reached an all-time high – with their indexed basket of goods costing more than five times as much as in 2002.

The first week of March saw it jump by 8% – the highest on record. This is primarily due to energy costs, which have jumped by almost 22% in the same period. Energy costs have risen due to sanctions focused on Russia’s invasion of Ukraine. The U.S. has gone so far as to embargo Russian oil entirely. This in turn has left Europeans scrambling for alternative sources of energy (Europe imports about 40% of its oil from Russia), which has in turn driven costs up here in the U.S. as well. This has complicated forecasts, but overall demand has not changed significantly. The MPI is a combination of many commodities other than just energy, the majority of which have only seen modest increases.

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