PPI: Highest annual inflation in 26 years!

U.S. government data released this morning showed annual Producer Price Index, the government's measurement of wholesale inflation, increased 6.3%, the highest since 1981! Click on the graphic at right, which is linked to the news report on Marketwatch.com. Now that's inflation to be concerned about, despite the denials of Mr. Bernanke in his speech last Friday. Where is Volcker when we need him?

In addition, retail sales for the year were up a meager 4.2%, the slowest in 5 years. December monthly retail sales were down .4%, while economists had anticipated an increase. Since consumer spending, reflected in the retails sales figure, accounts for 2/3 of GDP, this disappointing report sent stock index futures southward. Including disappointing earnings reports from Merrill Lynch and Citigroup, which included another cash infusion from various sovereign wealth funds, the combination has caused stocks to sell off in the futures markets. Steve Leisman, chief economic analyst for CNBC, called it a "perfect storm" of bad news for the day.