100.1 Why Inflation is OVERHYPED: US Producer Prices
———Ep 100.1 Summary———
Producer prices in the US are elevated, but decelerating. They’re elevated because of demand surges, supply shocks and logistics snarls – all TRANSITORY factors. Producer prices ARE NOT elevated because of permanent, pervasive central bank or government inflationary action.
———Ep 100.1 Topics———
00:00 Show Intro: Do increases in PPI, CPI, and Import/Export prices translate into inflation?
00:20 French shipping conglomerate CMA-CGM has decided to freeze shipping rates till 2022.
03:39 Shipping was a profitable business, during globalization, before 2008 – before the crisis.
06:23 Price surges since 2020 have to do with demand, supply surges and logistical snarls.
08:51 Why is a price surge not textbook, legitimate inflation (persistent, pervasive)?
11:59 An impressive surge in producer prices is taking place – like in 2008 and 2011.
15:47 PPI values in 2021 are repeating the surge-and-fall observed in summer 2020; transitory?
20:24 PPI decelerated month over month, though year over year it accelerated.
22:09 The near-term outlook appears reflationary, though it’ll likely be temporary.
22:49 Will de-globalization raise prices permanently?
———Ep 100.1 References———
Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by the complex pencil himself, David Parkins. Podcast intro/outro is “The Kill” by Particle House feat. Le June from Epidemic Sound.