Could Australia enter a stagnated economy with inflation in 2024? Iron ore price/demand collapse + a bid oil price over $78, may ensure.

This is an interesting chart, showing the spot Iron price overlaid with West Texas Intermediate in Australian dollars. Which is probably keeping the Reserve Bank of Australia up at night.  Below pane is the WTI price in U.S. Dollars with 'price tags' of the so called 'Goldilocks' oil price at $70 over a 6 year period.  Note the oil spike of 2022, and the geopolitical issues in 2023 which has kept the oil price bid between $78 and $90.  Offering further evidence that a stagflation economy, possibly beginning with Australia, is on the cards.

Please refer:

• "Iron ore’s plunge bodes ill for steel demand — and China’s economy" FT

Despite oil demand slowing, which is China entering a recession.  Oil remains bid over $78

• "Oil Price Outlook: OPEC+ Extends Supply Cuts into Q2, WTI & Brent Ease"  DailyFX

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