The import price index came in hot in August, up 2% against expectations for a rise of 1% and a decline of 0.7% in July. The ex-fuels reading, which excludes the impact of oil and gas prices, was up 0.4%. Food and beverage costs were up 1.7%, industrial supply prices were up 6.1%, while both capital goods and autos and parts were up. Only consumer goods showed a decline (of 0.2%). Inflation is not a HUGE issue right now. But the continued fall in the dollar could continue to drive commodity prices higher — and that’s going to result in pricing pressures at some point down the road.
Import prices spike amid falling dollar
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Now couple the dollar destruction with the fact that American retailers and producers are slashing their sales prices to sell anything and the picture becomes clearer.
We, the “average” American soon won’t be able to afford anything and we won’t have any jobs to make money to buy stuff anyway.
Recovery is right around the corner alright.