Only Shocking To Those Who Listen To Bad Economists
Now these same Keynesians who thought inflation would be falling by now, are again assuring us that inflation will fall back again. But I can tell you right now what is going to happen. Inflation won't fall, it's going to get even worse. The latest numbers that spooked the markets only reflect to a very small extent the effects of the recent commodity price surge for three reasons that I elaborated on here. But at least one and likely two of these factors will soon disappear, causing particularly food prices to rise at a much faster pace. And with oil prices again reaching $100 per barrel and with the price of Chinese imports rising faster and faster, energy price- and "core" price inflation will also accelerate.