Courtesy of Michael Pento of Euro Pacific Capital
Of course there is no inflation; the Fed wants our minds right on that front. But for those of us who have escaped Bernanke’s rehabilitation camp, take a look at this morning’s data on import prices–brought to the American public courtesy of our crumbled currency.
U.S. import prices surged 2.7% in March from February! Prices of imports rose 9.7% for the year ended in March. Fuel prices increased 28.7% during the year, driven by a 36.6% advance over the past six months. And in case you are thinking soaring import prices are just about energy, food and beverage prices jumped 18.9% YOY.
Prices for foods, feeds, and beverages advanced 4.2% month over month, the largest monthly rise since the 4.3% increase in July 1994. So let’s say you wanted to avoid paying these soaring import prices for fuel, beef and beverages and decided to ride your bike to the health food store. You would be shocked to find that even imported vegetable prices had jumped 26.8% YOY.
Skyrocketing import prices mean the GDP estimates for Q1 will be coming down. Slower growth and higher inflation…I think there is a word for that condition–STAGFLATION!
Michael Pento, Senior Economist at Euro Pacific Capital is a well-established specialist in the “Austrian School” of economics. He is a regular guest on CNBC, Bloomberg, Fox Business, and other national media outlets and his market analysis can be read in most major financial publications, including the Wall Street Journal. Prior to joining Euro Pacific, Michael worked for a boutique investment advisory firm to create ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE.
Pic credit: the Economist, via Flickr
