In a speech on Monday, Federal Reserve chairman Ben Bernanke said he did not see inflationary threats on the horizon.
Perhaps that is because he’s looking in the wrong place. The prices of crude goods, those in the earliest stages of production, have been inflating for most of the year. The willingness to pay more for crude goods probably indicates that businesses are predicting selling finished goods at higher prices. In other words, this is a strong indicator of inflationary expectations.
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