Higher Prices In China Will Become Higher Prices In The U.S.

Yesterday the ten-year yield closed below 1.50% for the first time since March 3.

Is the interest rate market telling us that the hotter inflation data will start petering out?

For clues, let’s take a look at what’s happening in China, where the products are made that we will be buying in the many months ahead…

This week, China reported the hottest prices for producers in 13 years …

And when the producers get those final products on a ship, you can see in the next chart, what has happened to freight container prices coming from China …

So, if you are lucky enough to get your product on a ship, you’re paying nearly three times as much to get it here, compared to a year ago. To be sure, these prices, along with rising wages, will be passed through to consumers.

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