WASHINGTON (MarketWatch) - The U.S. producer price index rose a seasonally adjusted 0.8% in September to mark the biggest increase since April, the Labor Department said Tuesday. Economists surveyed by MarketWatch had predicted a 0.4% gain. Higher wholesale prices were driven by a 2.3% increase in energy costs and a 0.6% rise in food costs. If those two categories are excluded, "core" wholesale prices rose a lesser 0.2%. Economists were expecting a 0.1% increase. Over the past 12 months, wholesale prices have climbed an unadjusted 6.9%. Omitting food and energy, wholesale prices have risen a more modest 2.5% in the past year http://www.marketwatch.com/ Forget about deflation. Stagflation is the new wording...
U.S. will be getting what it has been asking for: more expensive imports from China. China labor costs are going up; currency are going up. Imports from China will cost more and inflation will pick up in U.S.