Inflation warning signs “FLASH RED”

The NY Times reports that inflation warning signs “flash red.”

“The Federal Reserve’s preferred gauge of inflation climbed in August at the quickest pace in 30 years, data released on Friday showed, keeping policymakers on edge as evidence mounts that rapidly rising prices are poised to last longer than practically any of them had expected earlier this year,” reports the newspaper.”

Personal Consumption Expenditures Index, Annual Change

1980       1990    2000 2010   2020
Source: Bureau of Economic Analysis • By The New York Times

“The numbers come at a pivotal moment, as inflationary warning signals abound. Used car prices show signs of picking up again,costs for raw goods like cotton and crude oil are increasing and companies continue to experience pain from persistent supply chain disruptions.

“That is stoking fears in Washington and on Wall Street that although rapid price gains will eventually fade, the adjustment could drag on for months.”

BofA on the “great inflation of 2021”:

– oil up 55%,
– natural gas up 122%,
– food up 33%,
– shipping costs up 225% in ‘21;
– past 6-months US CPI up 7.6% (annualized),
– core CPI up 6.8%,
– wages 4.9%

— zerohedge (@zerohedge) October 1, 2021

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