The Philly Fed Index came out with the prices paid component surging nearly 24% in a month. Over the last 5 months it has surged (if my math is correct and I believe it is) 450%. Looking at just this last month the 24% rise in prices paid was up 12.9 points to 67.2 while prices received is up only 3.9 points to 21. The difference between the two is now at the widest point seen in 32 years.
As I mentioned, companies will try to first streamline meaning more jobless people, cheaper quality materials, smaller portion sizes, etc. However, this phenomena doesn't look like it will stop anytime soon looking at the CRB index and despite what the Fed considerers inflation. This is hitting small business the, heart of America (small businesses easily employ more people then large businesses in America by triple digit margins) the hardest. How Wall Street can even be flat on a day like this is a controversial question to say the very least.
5 years ago
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