Pay The Piper
Some of the inflation banter emanating from prominent market participants can properly be written off as fearmongering, attention-seeking or just an inability to resist the temptation to deride the Fed.
After all, it's not like Jeff Gundlach (who suggested this week that price pressures may not be as "transitory" as the Fed thinks) cares how much a loaf of bread costs. Jeff probably thinks apples are $12 each. Same goes for Paul Singer (earlier this year, Singer warned of a "tremendous" inflati
Prices of many commodities are up due to the economy bouncing back. The alternatives are worse. Emerging market countries would be wise to provide aid to support incomes if at all possible- not subsidize scarce commodities- that always backfires by defeating price signals. Developed countries would be wise to help in that endeavor. In the meantime, higher prices will eventually cause commodity production to increase- agricultural commodities are usually faster than say copper (mines take years to develop). We have seen this movie before. Targeted smart aid will help, poorly designed aid usually does not.
I’m hoping meat prices rise. Maybe we will learn to consume less of it.