It’s not just that there isn’t much inflation evident in consumer prices. Rather, it’s a pretty big deal given the deluge of so much “money printing” this year, begun three-quarters of a year before, that consumer prices are increasing at some of the slowest rates in the data. Trillions in bank reserves, sure, but actual money can only be missing.
OK, fine. What about commodities? If the Fed’s monetary fires haven’t fed through to corporate pricing power for the stuff going out the door, then perhaps it just hasn’t gotten that far yet. Given the huge move in especially industrial metals (and others) led by Dr. Copper, though companies aren’t raising prices on the goods (and services) they’re sending out maybe that’s just because they haven’t yet passed along the rapidly rising prices of the materials coming in.
After all, it would stand to reason that if commodities are on their way up – for inflationary reasons of imminent currency “devaluation” – we should be able to see it by now at least in the form of widespread producer price inflation. And if so, that would have to eventually feed through to what consumers end up paying, too. Read more…..
Chart of the Day
Major shipping companies are combining forces to ensure a safe and timely delivery of the COVID-19 vaccine across the country once the FDA issues a formal approval.