Inflation is coming....

[Melon]

Many calls with large petro and chemical producers.
Price increases are rolling in. Building block chemicals for manufacturing. European chemical producers not confirming export orders due to cost uncertainty. German Natural Gas was Up 50% beginning of the week. UK similar. Ocean freight jumped 40%. Ships are tied up in the Middle East. The US is relatively protected for natural gas and but oil is not behaving. The spread of Brent to WTI inexplicably compressed….oil in the US is rising because you can get it. $90 barrel Brent.


All of it coming straight to us. It all rolls through to every item we buy.

[TommieMommy]

1. So very true

[ProfessorGAC]

2. Probably So

Energy costs are often (usually) inflation triggers as they quickly eat into margins, which at retail are quite thin.
The retailers simply can't afford to absorb the cost, so they get passed on to the consumer.
The weighting in the CPI understates overall inflation caused by energy pricing, but it's triggering effect is fairly obvious.