Double-Digit Inflation Now a Reality

We have been warning of double digit inflation and it has finally coming true. Even the drinks on US flights have gone from $5 to $6, a 20% hike. They know we’re expecting inflation so they give it to us. This is how spirals get started. Just last week, P&G followed Dow’s lead announcing a 16% hike in prices for its products. Are the politicos in Washington going to let this fester while they worry about the election only to find that interest rates need to be jacked way up to crush it? I hate to say it, but I fear we are in for a very tight-money fed this Christmas.

This entry was posted on July 18, 2008 at 11:28 am and is filed under Risk. Tagged: , , , , . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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