Please don’t submit this chart to He Who Sees No Inflation (Bernanke). He’s about to be re-confirmed by the Senate, and he doesn’t want these 1970’s style y/y price charts messing with this 1930’s gig. Gotta keep your politics local Ben. No need for this global macro stuff.
The chart below outlines the recent run-up in India’s weekly Wholesale Food Inflation to +18.2% y/y.
This morning we also saw India’s industrial production growth rate hit +11.7% y/y. That was up +140 basis points from October and also a 25 month high. While Bernanke pretends this country is some form of a depressed 1990’s Japan, the rest of the world’s economic leaders seemed poised to continue raising rates.
China has raised rates twice in the last 2 weeks. Altogether, Chinese + Indian growth combined with these recent inflation reports provide plenty of support for those who aren’t being paid to be willfully blind to real-time data.
Keith R. McCullough
Chief Executive Officer