The January Producer Price Index for the Unisted States has just been released, and shows that wholesale inflation is higher by 1% year over year. If sustained throughout the year, this would amount to producer inflation of 12% per year! December PPI was also revised higher by .2% to .3% (from .1%). This is the highest wholesale inflation in 26 years!
Food inflation alone is up 1.7%, equivalent to 20.4% annually! Energy prices were up 1.5% for the month, an equivalent of 18% per year. Fortunately, the various inflation indexes tend to fluctuate from month to month, so it is possible that these numbers will fall next month. Still, inflation numbers are trending higher over the past 3-4 months. The inflation trend is moving higher at an accelerating pace! And if inflation is this high during a weak economy, what can we expect when the economy recovers? Hyperinflation?
Food inflation alone is up 1.7%, equivalent to 20.4% annually! Energy prices were up 1.5% for the month, an equivalent of 18% per year. Fortunately, the various inflation indexes tend to fluctuate from month to month, so it is possible that these numbers will fall next month. Still, inflation numbers are trending higher over the past 3-4 months. The inflation trend is moving higher at an accelerating pace! And if inflation is this high during a weak economy, what can we expect when the economy recovers? Hyperinflation?
Street Gags on Inflation Data
Producer Prices in U.S. Rise at More Than Double Pace Economists Estimated
