PPI has jumped unexpectedly higher today. Only 0.1% increase was expected. We must keep in mind that this figure is for a single month, so I often will multiply the PPI or CPI reported figure by 12 to obtain a realistic expected of an annual inflation rate. This PPI figure will reignite concerns that the Fed is starting to fuel inflation. This is very significant. It also suggests that in the future, hard assets will be the investment of choice. Wow! This is a big surprise! Gold is beginning to take off again!Thursday, February 19, 2009
Inflation Surprise! PPI Jumps Higher by 0.8%, 0.4% Core!
PPI has jumped unexpectedly higher today. Only 0.1% increase was expected. We must keep in mind that this figure is for a single month, so I often will multiply the PPI or CPI reported figure by 12 to obtain a realistic expected of an annual inflation rate. This PPI figure will reignite concerns that the Fed is starting to fuel inflation. This is very significant. It also suggests that in the future, hard assets will be the investment of choice. Wow! This is a big surprise! Gold is beginning to take off again!
