INFLATION MOVING FASTEST IN 13 YEARS

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Inflation is on the rise... and it global. 

Consumer prices in the world’s richest countries have risen 3.3 percent since April 2020, the fastest rate of increase since 2008, the 36-member Organization for Economic Cooperation and Development (OECD) has reported.

In April, energy prices were up 16.3 percent year-on-year, compared with 7.4 percent in March, the OECD said.

In March, inflation rose from 3.1 percent to 3.8 among the Group of 20 wealthy nations, its fastest pace in more than a year, the OECD said.

Much of the inflation is due to what is known as "base effects," the OECD noted: prices for many goods and commodities fell during the shutdown; now the economic recovery has lifted prices, making a portion of the inflation rate simply a return of prices toward their pre-crash levels, the OECD explained.

The base effects will persist for some months, then gradually fade as the economy normalizes, the OECD predicted.

Surveys of purchasing managers released last week and reported by the Wall Street Journal found that business activity in May increased at its fastest rate in 11 years.

However, companies had to wait a record time to receive orders, paid prices that had swelled the fastest since 2010, and were raising their prices by the greatest proportion on record, the surveys found.

TREND FORECAST: As the cover of this issue of the Trends Journal illustrates, it is all about inflation. Again, the equation is simple. The higher inflation rises, the greater the pressure on central banks to raise interest rates. The higher interest rates rise, the more expensive it is to borrow money. And when the cheap money flow stops, we forecast equity markets and economies that have been artificially propped up by the unprecedented injections of monetary methadone will crash... and the “Greatest Depression” will sweep the globe.

4 Comments
  1. Lee 2 months ago

    where does the trend journal suggest we invest to preserve purchasing power and wealth in a depression

  2. James Tricarico 1 month ago

    To say something optimistic: Many public companies have plans in place to grow revenue by 20% a year effectively doubling within 5 years. Let’s say those are the group of companies that will grow the fastest….Inflation exist right on top of these goals and in overall terms, may not effect them all that much. Companies that grow revenue by allowing their customers to cut costs come to mind. The hard part is knowing how to evaluate which companies would be at the top of this list.

  3. Craig Bradley 1 month ago

    THE BIDEN ADMINISTRATION EXPECTED TO ‘FALL ON ITS OWN SWORD” THIS FALL-WINTER

    Stock market analysts and economic/financial pundits have been attempting to time the stock market top for the past ten years, to no success. Even if recent forecasts of a wobbly economy are realized by this Fall and even a “Collapse” of the Biden Administration also comes true, nobody is going to go to cash to any appreciable degree at this time. The reason is simple: Stock market speculators are way too greedy to pull-out while there is still more money to be made.

    So, most investors will remain “all-in” until that fateful day or moment arrives for them. Once the stock market undergoes a painful correction, there will be much “weeping and gnashing of teeth” as the economy completes yet another full cycle. The political Party in-power (Democrats) will bare the brunt of the blame if it happens on their watch, as always. (KARMA). Life still goes on however , but with less consuming and probably, even a bit of price deflation, as well. Such reversal of fortunes will be heaven sent for desperate Republicans, currently out-of-power.

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