Who are you going to believe, the government or your own wallet? From Bill Bonner at rogueeconomics.com:
YOUGHAL, IRELAND – We have all been reassured. Inflation can be easily defeated by the Federal Reserve. And according to economist Paul Krugman, it is already in retreat.
“The current wave of inflation is real,” concludes Adviser Investments, “but it’s not a long-term trend.”
Today, we look at reports from the front.
Whoa! Here’s CNN:
America’s factories are struggling with supply chain issues and material shortages. Now, that’s showing up in prices: in June, manufacturers reported the biggest price jump in 42 years.
The Institute for Supply Management’s manufacturing price index rose to 92.1% last month, up 4.1 percentage points and hitting its highest mark since July 1979. It was the 13th straight month of price increases in the sector.
“Record-long raw-material lead times, wide-scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy,” said Timothy Fiore, chair of the ISM’s manufacturing business survey committee.
And what’s it like in the trenches? Let’s check with our dear readers. Here’s Marius M.:
My company […] builds high-pressure washers for the oil industry. Beyond having to wait two or three months for components, like pumps, motors, and engines, prices for them went up, on average, 250%. Steel, which we use to build the structure on which we assemble an installation, went up 220% so far.
Even when we complete such an installation, that should be shipped to the customer, the wood to build a pallet went up 320%. And the cost of shipping itself went up 400%. That’s inside the U.S. We have installations ready to ship to Dubai and Abu Dhabi, but we cannot find a shipper at any price.
Finally, who do you think is gonna pay for all this mess? Granma Yellen? Just look in the mirror and find out!