US 2011 Inflation: 10.6%?
We thank Sean Corrigan of Diapason Securities for bringing our attention to the MIT Billion Price real time inflation Index (first reported here) who points out that based on the ongoing surge in prices, which have increased by 1.25% in the last 45 days (December 31, 2010: 101.085, February 14, 2011: 102.353), a simple annualization indicates a 10.6% increase in prices in 2011! With all undue respect to the Chairsatan (and other "disinflationists") it is time to bring Volcker out of the freezer once again. Look for the 30 Year to pass 5% in a few weeks. Oh yes, M2 surged to all new time highs again.