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8/4/21: No Inflation Cometh?

Summary:
Having written about strengthening signals of rising inflation globally and in the U.S. in particular before, here is today's note from Markit on the matter: https://ihsmarkit.com/research-analysis/global-price-gauge-hits-new-high-as-input-cost-inflation-accelerates-sharply-Apr21.html To quote: global inputs inflation pressures are at their highest since 2008:By sector:Factory gate prices are scaling up:Manufacturing supply shortages at nearly historical highs:Prices of all, but financial services and consumer services are up through the roof:Profit margins are being demolished:And consumer goods prices are going through the roof:Which means that targeting 2-3% inflation at current monetary policies is plain bonkers. Unless Central Banks are willing to entertain inflation at +5-10 percent

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Having written about strengthening signals of rising inflation globally and in the U.S. in particular before, here is today's note from Markit on the matter: https://ihsmarkit.com/research-analysis/global-price-gauge-hits-new-high-as-input-cost-inflation-accelerates-sharply-Apr21.html 

To quote: global inputs inflation pressures are at their highest since 2008:

8/4/21: No Inflation Cometh?

By sector:
8/4/21: No Inflation Cometh?


Factory gate prices are scaling up:
8/4/21: No Inflation Cometh?

Manufacturing supply shortages at nearly historical highs:
8/4/21: No Inflation Cometh?
Prices of all, but financial services and consumer services are up through the roof:
8/4/21: No Inflation Cometh?

Profit margins are being demolished:
8/4/21: No Inflation Cometh?

And consumer goods prices are going through the roof:
8/4/21: No Inflation Cometh?

Which means that targeting 2-3% inflation at current monetary policies is plain bonkers. Unless Central Banks are willing to entertain inflation at +5-10 percent above current, the rates must go up. Keep leveraging, everyone. Credit cards, margin trades and mortgages are about to get 'uncertain'... 

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