January’s producer price index (the price companies pay to make the things you buy) rose a full 1.0% over the previous month and 9.7% over January 2021. That’s an annual inflation rate of 12% even with using the new inflation algorithms. This follows last week’s disastrous consumer price index print:

Hennessy's View

Inflation Highest Since 1982 as Cost of Necessities Soars

The last time inflation was this high, “Eye of the Tiger” by Survivor was the number one song on Billboard. That as August 1982. Whitey Herzog’s St. Louis Cardinals (the original Greatest Show on Turf) was just a Glenn Brummer steal of home away from a trip to the World Series…

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a year ago · 2 likes · 3 comments · Bill Hennessy

Even more alarming to consumers: most of the PPI inflation has not been passed onto consumers. Via ZeroHedge:

And finally that pipeline flows down hill to the consumer as we note that the CPI-PPI - US margin proxy - is negative for the 13th straight month, as for now, input costs are not all flowing through to output costs for consumers...

At some point, businesses will let that pent-up inflation flow to your discount stores and supermarkets. As ZeroHedge ended its story, “It’s only a matter of time.”