Back To Square One, by David Stockman

Inflation will get much worse before it gets better, if it ever gets better. From David Stockman at

Apparently, it’s not even a high plateau which comes rumbling down the inflationary path. The April PPI for finished goods reported this AM was 15.6% above its a year ago level, making it the ninth straight month that it was up by swiftly rising double digits.

Needless to say, the geniuses in the Eccles Building did not see it coming, although producer level inflation has been roaring up the pipeline in plain sight for well more than a year. In fact, the Y/Y index rose from 2.6% in February 2021 to 9.5% by last April, yet they sat on their hands for another 11 months.

In view of the historically evident lag between producer and consumer prices, the chart below is nothing less than a stinging indictment of the incompetence, malpractice and cowardice of the Federal Reserve Board, the head of which is about to be coronated for a second term by the Fed’s clueless overseers on Capitol Hill.

Y/Y Change In PPI Finished Goods Index, February 2021-April 2022

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