<h1>RBI Study: Financialisation, Speculative Trading, and Emerging Market Demand Fuel Global Commodity Price Inflation.</h1> The Reserve Bank of India's Working Paper investigates the impact of financialisation, global liquidity, and fundamental factors on global commodity price inflation. It highlights that both speculative trading and emerging market demand contribute to price inflation. The study finds private liquidity to be inflationary, unlike official liquidity, due to central banks' interventions post-2008 financial crisis. The paper emphasizes the need for evolving regulations in commodity futures markets, beyond just OTC market reforms. It also suggests monitoring global private liquidity and enhancing supply-side responses to address inflationary pressures. The research uses a Vector Auto Regression framework to analyze these dynamics.