Inflation is amongst us and no doubt its effects of higher prices are coming. We have already seen increasing commodity prices and now oil reaches $110 a barrel mainly due to the middle east conflicts and a weakening in the dollar. This $110 price is said to be what keeps consumers from spending money but we have yet to see such impact as many stocks release positive earnings for the end of march. However recently released news from Walmart's CEO announced that prices for consumer goods would rise in June. (I've mentioned this in past blogs about the rise in the PPI leading to CPI inflation) and now it appears that it may be true! Believe me when i say Walmart has more accurate statistics of rising consumers goods than the U.S. and why shouldn't they its there profits that depend on this statistical accuracy for better forecasting future gains. Has the Fed's liquidity of Qe2 and low interest rates spiked prices beyond core inflation where is unemployement going to stand are we to face stagflation. We will all see soon enough! And if so will the Fed raise interest rates to battle this inflation in time or will it even matter the answers are soon to come I'm sure...
Business insider Walmart CEO Inflation Article-Link
