The article points out that 'wholesale' inflation i.e. the costs of production, including foods and energy, increased by 1.1% last month, which was almost 3 times as high as analyst expectations. If this continues, it would translate into an annualized 'wholesale' inflation rate of around 15%.
What this is telling us is that the US providers of goods and services are being forced to 'eat' rapidly rising costs ... which will eventually have to be passed on to the consumer in the form of price increases or the provider of goods and services will face bankruptcy.
At the same time, the article points out that (due to deteriorating economic conditions) the sales of non-essential items like cars and trucks declined notably last month. This worsens the economic pressure on providers of non-essential items because their 'fixed costs' (like property taxes, energy bills) do not decline along with declining sales. The same point logically applies to the providers of non-essential services i.e. restaurants, strip clubs, etc.



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