Financial Times FT.com

Stagflation fears as commodities post strongest gains since 1970s

By Javier Blas in Vienna

Published: March 3 2008 02:00 | Last updated: March 3 2008 02:00

Commodities prices posted their biggest monthly gains in February since the oil crisis of the 1970s and have enjoyed their strongest start to any year for half a century.

The gains have been fuelled by an explosion in popularity among investors seeking refuge from turmoil affecting equity and credit markets, and supported by strong demand from emerging markets, widespread supply disruptions and a growing interest in commodities as a hedge against rising inflation and the weakness of the US dollar.

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