Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes
How Stagflation Is Reshaping the Wholesale Energy Market
Lucas and Luna examine how stagflation is transforming wholesale energy markets, using the latest data: the ECB's first rate hike since 2023, a 1.1% surge in wholesale prices driven by energy, and rising CPI at 4.2%. They focus on the structural shift in how manufacturers and utilities are locking in long-term contracts, drawing parallels to 1970s hedging strategies but with modern financial instruments. The episode includes a specific case of a German chemical firm that locked in fixed-price power deals, and what that means for broader inflation dynamics. Listeners learn why wholesale…
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