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Inflation Hits US And Will Get Worse

Published 03/28/2016, 12:57 PM
Updated 07/09/2023, 06:31 AM

Core inflation has already broken above 2%.

US Inflation

This happened when Crude Oil was imploding.

Crude Oil

As well as commodities in general.

commodities

Why does this matter?

Because core inflation is ABOVE 2% at a time when commodity prices were FALLING. The Government HAS TO adjust its models to account for this so that ANY RISE in commodity prices will PUSH inflation to the upside.

Speaking of which, since bottoming in February, Oil is up over 22%. Industrial metals are up 8%.

Crude Vs. Industrial Metals

Put simply, the inflation genie is out of the bottle. Core inflation is already moving higher at a time when prices of most basic goods are at 19-year lows. Any move higher in Oil and other commodities will only PUSH core inflation higher.

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