# Peeling the inflation onion, revisited | Bank for International Settlements

> New York Fed President John Williams uses an onion metaphor to explain U.S. inflation, noting inflation has fallen from a peak above 7% to 3.5% on the PCE measure. He says the outer layer is globally traded commodities such as grains, oil, steel and lumber, whose prices have eased as global demand has come into better balance.

- Date: 2023-10-03 · published 2023-10-03T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/33533-peeling-the-inflation-onion-revisited-bank-for-international-settlements
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Williams' view that commodity-driven inflation is fading suggests the Fed may hold rates high for longer, keeping the dollar firm and adding a modest headwind to dollar-priced grain and oil.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-09-29 | [Peeling the Inflation Onion, Revisited](https://feedsoft.ai/events/34008-peeling-the-inflation-onion-revisited.md) | +1.1% | +0.9% |
| DXY | 2019-09-12 | [ECB press conference - introductory statement \| Bank for International Settlements](https://feedsoft.ai/events/57277-ecb-press-conference-introductory-statement-bank-for-international-settlements.md) | -0.3% | +0.3% |
| DXY | 2023-02-27 | [Why inflation in the U.S. is a problem for the Bank of Canada](https://feedsoft.ai/events/37582-why-inflation-in-the-u-s-is-a-problem-for-the-bank-of-canada.md) | -0.7% | -0.9% |
| DXY | 2025-11-19 | [Dollar rises in the Brazilian market following international movement \| Brasil 247](https://feedsoft.ai/events/22163-dollar-rises-in-the-brazilian-market-following-international-movement-brasil-247.md) | +0.3% | -0.9% |
| DXY | 2023-09-08 | [Why the US Fed's interest rate pause is a win for dollar bulls \| The National](https://feedsoft.ai/events/34010-why-the-us-fed-s-interest-rate-pause-is-a-win-for-dollar-bulls-the-national.md) | -0.6% | +1.6% |

## Sources

- bis.org: https://www.bis.org/speeches/20231003-peeling-inflation-onion-revisited

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.