Producer prices highest in 27 years! My forecast still right on the money!
Source: http://blogs.moneyandmarkets.com/blog/real-wealth/0/0/ppi-highest-in-27-years-my-forecast-still-right-on-the-moneyPosted on Wednesday, August 20th, 2008 | In Commodities
Looks like my forecast is still right on the money — producer prices the highest in 27 years. Once that feeds through to the consumer, the conservative, manipulated CPI will have no choice but to bust through to record highs as well. — Larry
Producer Price Index Jumps 1.2%; Housing Starts Reverse June Rise
Washington (Wall Street Journal) — U.S. producer prices unexpectedly soared at their highest annual rate in 27 years last month as rising wholesale prices for energy spread to a variety of products including automobiles, prescription drugs and capital equipment.
Relief is likely on the way as energy and commodity prices have retreated this month while the U.S. dollar has firmed.
Still, it will be difficult for Federal Reserve officials to look past this latest report, which comes on the heels of a 17-year-high rise in consumer prices.
Unless prices at both the wholesale and consumer level soften quickly in response to the drop in energy prices, Wall Street may have to rethink its view that the Fed will hold official interest rates at their current low levels into 2009.
Last 5 posts by Larry Edelson
- Dollar’s fall last week is exactly what I’ve been warning about! - December 15th, 2008
- Real values ... real opportunities ... and real money ... - December 12th, 2008
- Veteran analyst Richard Russell seems to agree with me on the possibility of a major dollar ... - November 26th, 2008
- The Sequel To The G-20’s Secret Debt Solution - November 21st, 2008
- Gold Demand Exploding Higher! - November 21st, 2008
capital equipment, Commodities, energy, Energy Prices, Federal Reserve System, United States, Wall Street Journal, Washington
 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
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