Is our economic bubble going to burst? That is the impression we get from recent reports that showed a widespread drop in raw material prices over the last few weeks. Oil witnessed the biggest price fall, which decreased by 10 dollars in one single day on Thursday 5th May.

Field of cotton in South Carolina, USA

Mineral prices played a big part in the drop, where copper fell by 6%, nickel by 7% and lead by 12%. Aluminium seemed to be the only one to increase, going up 12%. Precious metals, on the other hand, experienced a strong decline two weekends ago. In terms of plant materials, the collapse was even greater. After seeing a 60% price climb in one year, sugar decreased by 26% since the month of March.

As for cotton, after its value increased by more than a whopping 160% over the last year, it has also gone down 25% since March, which was when the last price peak was registered. If things continue this way, the situation of the textile and clothing industries could take a turn for the better. Both have suffered a great deal over the last several months due to the sharp rise in raw material costs, since this inevitably leads many retailers and brands to also increase their retail prices.