inflation

问题如下：

Q. Which of the following statements most correctly describes why commodity investments are thought to provide a hedge against inflation?

选项：

A.The returns on commodity investing are driven by commodity price changes, and inflation partially reflects these changes. B.Commodity prices increase after inflation rates increase. C.Expectations of higher inflation cause commodity prices to increase.

解释：

A is correct. Commodity prices are a significant portion of consumer prices because commodities include aspects of everyday life, such as food and energy, and thus consumer price inflation will incorporate the effects of commodity price changes. By investing in commodities, an investor is, at least partially, hedged against the inflation that occurs with rising commodity prices. B is incorrect because inflation and commodity prices do not move together, but instead, changes in the inflation rate lag behind changes in commodity prices. C is incorrect because in this case, commodity price increases occur before inflation changes.