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Economics vocabulary · Markets, Supply and Demand

Commodity

Meaning in economics, with examples

/kəˈmɒdəti/nounCommon term

In economics, commodity means: A basic raw material or farm product, such as oil, copper, wheat or coffee, that is traded in large amounts and is much the same whoever produces it.

In Turkish: emtia, hammadde

How it is used

Very common in news on inflation and trade: commodity prices, a commodity boom, commodity exporters. Most commodity prices are set on world markets in US dollars. Countries whose exports depend on raw materials are called commodity exporters.

Example sentences

  1. Falling commodity prices have helped to bring inflation down.

  2. Copper is one of the commodities most sensitive to global growth.

Common collocations

  • commodity prices
  • commodity exporter
  • commodity boom
  • soft commodities
  • commodity markets
  • exportA good or service sold to buyers in another country; as a verb, to sell goods or services abroad.
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • cost-push inflationInflation caused by rising production costs, such as higher energy prices, wages or import costs, which firms pass on to their customers.
  • perfect competitionA theoretical market with many small sellers of an identical product, free entry and exit, and full information, so that no single firm can set the price.
  • boomA period of very fast growth in the economy or in one sector, with rising demand, prices, profits and jobs.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Markets, Supply and Demand

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This page explains English vocabulary for learners. It is not financial advice.