Stock futures have plunged to triple-digit losses on the Dow this morning pre-market as wholesale inflation has surprised even the most pessimistic prognosticators. July PPI inflation reached 1.2%, showing that contrary to the Fed's expectations, inflation continues to accelerate higher. This is the highest inflation rate in 27 years! Annual inflation thus far has reached more than 8%, but the monthly figure suggests that the annual inflation figure is accelerating. While the wholesale inflation rate is often discounted by the markets, it is very significant because it is a leading indicator of what is coming down the road for consumer inflation! In fact, even the core inflation rate burgeoned to a rate of more than 8% on an annualized basis. The real inflation rate is about twice the reported figure. That bites! And it hurts!Tuesday, August 19, 2008
Wholesale Inflation Explodes!
Stock futures have plunged to triple-digit losses on the Dow this morning pre-market as wholesale inflation has surprised even the most pessimistic prognosticators. July PPI inflation reached 1.2%, showing that contrary to the Fed's expectations, inflation continues to accelerate higher. This is the highest inflation rate in 27 years! Annual inflation thus far has reached more than 8%, but the monthly figure suggests that the annual inflation figure is accelerating. While the wholesale inflation rate is often discounted by the markets, it is very significant because it is a leading indicator of what is coming down the road for consumer inflation! In fact, even the core inflation rate burgeoned to a rate of more than 8% on an annualized basis. The real inflation rate is about twice the reported figure. That bites! And it hurts!
