More Evidence Price Inflation Is Picking Up
Meanwhile, the ISM price index in its manufacturing survey rose to 71.5 from 66.5.
The latest market developments, with commodity prices soaring across the board and the dollar falling against most other mayor currencies is likely to continue to put further upward pressure on price inflation. As I wrote yesterday, the Fed will "fall behind the curve" and see price inflation get out of hand if it pauses soon. Indeed, they might just do it even if their gradual tightening continues.