{"id":58091,"date":"2021-05-30T08:52:49","date_gmt":"2021-05-30T13:52:49","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58091"},"modified":"2021-05-30T08:52:49","modified_gmt":"2021-05-30T13:52:49","slug":"where-will-the-next-deflationary-shock-come-from","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58091","title":{"rendered":"Where Will The Next Deflationary Shock Come From?"},"content":{"rendered":"
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Where Will The Next Deflationary Shock Come From?<\/a><\/h3>\n<\/div>\n<\/div>\n
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\u00a0View as PDF<\/a><\/div>\n

\u201cWhenever I hear numbers like this, I look back to my childhood growing up in Hungary, where\u2026[the] value of money meant nothing. I\u2019m very worried this is an unstoppable situation because the longer the Fed waits, the more they will have to raise rates. So, we\u2019re basically painting ourselves into a box, and I don\u2019t see how we\u2019re going to get out of it<\/em>.\u201d<\/em>
\n\u2013 Thomas Peterffy, chairman and founder of Interactive<\/p>\n

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Introduction<\/strong><\/p>\n

It seems as though wherever one looks, soaring prices are in the news. Everything from the rising price of lumber to oil, to housing, to food is dominating headlines. This week, key inflation data was released, and let\u2019s just say it wasn\u2019t pretty. The Consumer Price Index (CPI), which measures a basket of goods as well as energy and housing costs, rose 4.2% year-over-year, surpassing expectations from a Dow Jones survey that anticipated a 3.6% increase. The month-to-month gain was also much higher than expected \u2013 at 0.8% versus 0.2%. Additionally, the Producer Price Index (PPI) \u2013 another key inflation indicator \u2013 spiked 6.2% for the 12 months ended in April, which marked the largest increase since the Bureau of Labor Statistics started tracking the data in 2010. The PPI rose 0.6% month-over-month, which was twice the rate expected in a FactSet survey.<\/p>\n

Markets were rattled by the data \u2013 as nearly everything sold off on Wednesday after CPI data was published. Markets gained back some of the losses on Thursday morning, before selling off slightly mid-day when PPI data was released. Despite these key inflation indicators signaling trouble ahead, economists and policy makers have attempted to quench fears by signaling that the rising prices are \u201ctransitory.\u201d Federal Reserve Atlanta Fed President Raphael Bostic said Wednesday that he expects bouts of inflation volatility through September…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/article>\n

LOUIS-VINCENT GAVE<\/a>, evergreengavekal, deflation, price inflation,\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Where Will The Next Deflationary Shock Come From? \u00a0View as PDF \u201cWhenever I hear numbers like this, I look back to my childhood growing up in Hungary, where\u2026[the] value of money meant nothing. I\u2019m very worried this is an unstoppable situation because the longer the Fed waits, the more they will have to raise rates. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[202,31287,15654,13351],"class_list":["post-58091","post","type-post","status-publish","format-standard","hentry","category-economics","tag-deflation","tag-evergreengavekal","tag-louis-vincent-gave","tag-price-inflation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58091"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58091\/revisions"}],"predecessor-version":[{"id":58092,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58091\/revisions\/58092"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}