Stagflationary disaster looms.
As prognosticators ohh and aah over the soaring consumer price index (up 2.5% YoY – the most since March 2012), driven by a 14.2% YoY spike in gasoline prices, it appears they missed the fact that real average weekly earnings plunged by 0.6% YoY – the biggest wage collapse since November 2011.
After Germany and China’s inflation-a-palooza, US consumer prices are soaring too… The 0.6% MoM rise is the most since Feb 2013 and 2.5% YoY rise is the highest since March 2012.