"The Labor Department released the Producer Price Index, showing an increase of 0.7% in producer prices, an annualized rate of 8.4%.
Bloomberg reported that wholesale prices were 3.7 percent higher in April than a year ago. Prices of crude goods rose 3 percent. Over the last 12 months, the costs of crude goods jumped 20.4 percent. Energy prices rose 1.6 percent in April after rising 0.6 percent in March. Gasoline prices increased 3.4 percent. The cost of dairy products jumped 10.4 percent, the biggest rise since July 1946. Prices of steel mill products increased 6.3 percent in April, the biggest rise since a 6.8 percent surge in July 1974. The Consumer Price Index was released on Friday, and it shows the same unhealthy rise in price inflation.
The 10-year yield now is higher, in relation to trailing money market rates, than it has ever been prior to a rate hike by the Fed....
And yet... the Commerce Department said retail sales fell by 0.5% in April. The Labor Department reported initial jobless claims increased to 331,000, up from the 318,000 reported last week.
So let's see if we can restate the above: Sales are down, people are losing their jobs, and prices are up. |
