The fundamental issue is that the relationship between U.S. economic activity and commodity prices has changed, and that this is complicating the policy response for exporters and importers alike (Chart 5). 3  In all, 18 of 23 commodities in the Bank of Canada’s commodity index are above their long-term average.
4  Current per capita income is between $ per capita for China, Thailand, and Malaysia. Commodity demand should continue to grow rapidly before slowing once income levels reach about $ per capita. See C. Cheung and S. Morin, “The Impact of Emerging Asia on Commodity Prices,” Bank of Canada Working Paper 2007-55.