Identifying what commodities saw their prices rise from the previous year?

Checking commodity price indices: You can check the commodity price indices published by
organizations like the World Bank, the International Monetary Fund (IMF), or the United
Nations (UN) to see which commodities have seen price increases from the previous year.

Tracking commodity prices: You can track the prices of individual commodities, such as crude
oil, gold, silver, copper, soybeans, corn, wheat, and coffee, to see which ones have
experienced price increases from the previous year.

Analyzing market trends: You can analyze market trends and news to see which commodities
are in high demand or experiencing supply shortages, which can lead to price increases.

Consulting with experts: You can consult with experts in the field of commodity trading, such
as commodity traders or analysts, to get their insights on which commodities are experiencing
price increases from the previous year.

Remember that commodity prices are subject to fluctuations based on various factors like
global events, supply and demand, geopolitical tensions, and weather patterns. Therefore, it's
essential to keep track of the latest information and trends to make informed decisions.

Making Inferences Why would a rise in oil prices cause inflation in other items?
Rising oil prices can cause inflation in other items because oil is a crucial input in the
production and transportation of many goods and services. When the price of oil increases, the
cost of producing and transporting goods also increases. This leads to higher costs for
businesses, which may then pass on these higher costs to consumers by raising their prices.

For example, transportation costs can increase due to higher oil prices, leading to higher costs
for shipping goods from one place to another. This can result in higher prices for goods that
need to be transported, such as food, clothing, and electronics. Additionally, oil is used in the
production of plastics and other petrochemical products, and these increased costs can also be
passed on to consumers.

Moreover, when oil prices rise, it can lead to higher energy costs for businesses and
households, which can lead to higher prices for electricity and other forms of energy. This, in
turn, can also lead to higher prices for goods and services that rely on these forms of energy,
such as manufacturing and transportation.

Overall, a rise in oil prices can have a ripple effect on the prices of many other goods and
services, leading to higher inflation in the economy. This is why oil prices are closely monitored
by policymakers and economists as they can have significant impacts on the overall health of
the economy.

Drawing Conclusions What dilemma does the Fed face in determining its next steps?
The Federal Reserve (Fed) faces a dilemma in determining its next steps because it needs to
balance two competing goals: promoting economic growth and controlling inflation.

On the one hand, the Fed wants to promote economic growth by keeping interest rates low,
which encourages businesses and households to borrow money and spend it on goods and
services. This can boost economic activity, create jobs, and help the economy recover from
recessions or slowdowns.

On the other hand, the Fed also wants to control inflation by keeping prices stable and
preventing them from rising too quickly. If inflation gets too high, it can erode the purchasing
power of consumers and lead to economic instability.