Wholesale prices are rising at the fastest pace since 1981, according to an article in the Washington Post today.
The reasons are varied, but the cost of materials used by businesses increased by 1.2 percent in July, and the cost has risen 9.8 percent during the last year.
Basically wholesale inflation translates into higher consumer costs. So far the Fed has not reacted to recent inflation reports for fear that higher borrowing costs would further slow the economy.
TODAY'S THREAD
Should the Fed keep watching the inflation figures in the hope that things will turn around soon?
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