The U.S. Labor Department reports that whiolesale prices jumped 1.8 percent in June. I expect the increase to level out a little, but if you maintained 1.8 over an entire year that annualizes to an inflation rate of nearly 22%. Most of this increase is due to the large jump in the price of fuel and food, in case you haven’t noticed.
The “core inflation” rate went up a more reasonable 0.2%. This is the price increase of things at the retail level and excludes food and fuel. This means that manufacturers and retailers are really eating their cost increases right now.
Some predictions from me:
- I think off shore drilling is inevitable.
- Alaska, too.
- California voters will approve funding for the LA to SF high speed rail line.
- Earlier I would have said Obama will win in November, but right now I think McCain is saying the things that most voters now want to hear. That is, “drill, drill, drill.”
- Interbike will be huge this year.
- Voters will increase calls for mass transit and bike facilities.
- Unprecedented job losses, either this year or the next.
- More bicycling all around. More golf carts and other electric mobility devices — scooters and e-bikes and so forth, too.
Don’t forget the contest!