Are you guys excited?! Tomorrow the CPI number for March comes out. You may recall that Gary North has been strutting because of the flat February number, so I am very anxious to see what happens.
For those who can't stand the suspense, let me up the ante: The producer price index for March came out today, and was 1.1 percent higher than the previous month, i.e. it is running at over a 14% annualized rate. That certainly doesn't seem too deflationary to me.
For the real thinkers out there, who might wonder whether the PPI and CPI move together: The PPI is certainly more volatile, but they tend to move together. I hope this link works, but try checking out this graph. You see how the red line jumped up at the end? Which way do you guess the blue line will go? I will be very surprised if it's flat again.
Ah the joys of being a libertarian economist! You don't get the thrill of running people's lives, but it has its perks.