Interesting how the Federal Reserve acted surprised when the official U.S. inflation hit 5%. Our readers were not shocked by this announcement. Any of our articles on inflation have predicted that inflation is inevitable.
Not only have we seen 5% rise in costs in May, we see more inflation coming our way.
* Rising oil prices are showing up at the gasoline pumps already.
* China’s producer-price index jumped 9.0% from a year ago in May, accelerating from April’s 6.8% increase.
* The median sales price for a home in the U.S. increased by 20% from $310,000 in April 2020 to $372,000 in April 2021.
* The S&P GSCI XX:SPGSCI, a commodity index composed of 24 exchange-traded futures contracts, trades more than 28% higher this year, on track for the biggest first-half gain since 2009.
Industrial inflation pressure will likely remain and pose additional risks to economic growth,” Citigroup economists said in a note, adding that there is no quick fix to this round of commodity-led inflation.
