I ran across this site today: http://inflationusa.blogspot.com/. They make the case that by comparing core CPI to actual prices of things like oil, that information can be gleaned about where prices are going.
Not sure what to make of it, but it does seem there are more and more bits and pieces in support of inflation.
The PPI in April grew by 0.5 units and the core PPI only by 0.1 units. It is the start of a period when the core PPI will lag behind the PPI - the difference will be falling. The rate of the fall will be inversely proportional to the distance from the new linear trend - in the next three months one could expect a dramatic growth in the PPI.
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