Higher Prices Coming To Safeway And Citi Market

From Karl Denninger of The Market-Ticker

"Amusing, really....


71.2 .vs. 68.8 last month, yet another increase.
But what's inside?  Well, trouble.  Employment, while expanding, is expanding slower.  And prices paid are standing at 81.2, statistically flat against 81.7 last month.  Since this is a diffusion index it's REALLY high.


The commentary is basically all focused on one place - input costs.


Yeah, people will cheer.  But they shouldn't be : Here it comes folks, and you're going to see and feel "it" right in the grocery aisle and the rest of the stores through the spring and summer.


At this point these increases in cost are baked into the cake and can't be gotten rid of.
Six to seven months since I started warning of it... about right, as the usual leadtime is about eight.
Right into spring earnings."

Notice the prices of milk, bread and butter lately? They're going to continue to climb as we head into spring and summer. And if the rioting in the Middle East continues? Well, you can easily expect 4-5 dollar per gallon gasoline. Worst-case scenarios would give us $7 gasoline.