Oil = 110$ , Gold = 1000$ , Euro = 1.6$ and Purchasing Power ...

Everything is rising and rising fast except your purchasing power that is being eroded due to a ramping inflation...

Now the questions are :

1- Will competition between companies push price down? depends... if there is a cartel or price fixing then indeed not...the poor will get poor and the rich behind the schemes get richer, greedy and loose most probably the key to paradise...but the rich don't care as long as they manage to make the gap between them and the majority of citizen as big as possible...in1789 in France the "Aristocrat" managed to get it as big as possible...then it ended up in a revolution...don't forget the average citizen is not as dumb as you might think...In todays world, the "aristocrat" are politicians and CEO, not all are corrupt by the definition but are living well beyond the average citizen that they represent...they should remember that...

2- Will a slowing U.S. , Europe, U.K. push commodities down? depends..if the speculation continue and if monetary policy mistakes are made in emerging market then indeed you will have to wait a bit longer until the bubble deflate or implode...

3-Inflation will concern oil and food prices but not Salaries as it was the case in the late 80's or 90's ... then if salaries rise a little it depends on how fast the inflation grows...higher it gets and lower your purchasing power become... The ECB will act ..but unfortunately with Germany and France in mind the biggest economies in Europe , the other one will most probably adjust abruptly..

and finally :

4- If you have gold teeth it's about time to sell...if you have a car of type SUV like a "hummer", the car will represent few days work for fueling it, so get rid of it... at some point it might be cheaper to buy anything from American online store, especially if the Euro continue to be on free fall (oops forgot that the government is in the middle through the custom tax or "protectionist tax" of 20%...let's wait for the euro to strengthen another 20% ..at 1.90 euro) ... Hey Wall mart when are you gonna implant in Finland and push prices lower, we need some help on that...