Inflation Finally Rears Its Head – Ep. 228

The Peter Schiff Show Podcast

We had a very significant day in the currency and gold markets yesterday We had some good follow through today that really buttresses the point that I want to make We got some economic news that was released yesterday that would have been considered bullish for the dollar and bearish for gold By most people, other than me, who trade currencies and who trade gold But the fact that gold did not sell off or the dollar did not rally was very significant The news was the CPI and Retail Sales First of all, Retail Sales came out stronger than expected, they were looking for a gain of .1% and we got a gain of .4% They actually revised the prior month's gain from +.6% to +.1% Now a lot of the gain in retail sales, though has to do with the fact that prices are higher Retail sales are not adjusted for inflation Prices are going up Retail sales may be going up, particularly things like gasoline It's not just the price of gas that's going up; everything is going up The CPI came out at the same time as Retail Sales and that is the bigger number We got a .6% rise in consumer prices That's versus the expected .3% Even the core - you take out food and energy - we were up .3% there versus an estimate of .2% Year over year CPI 2.5% that's the official number Obviously prices are going up a lot faster than that but according to the government they're going up at 2.5% Even if you take out food and energy and just look at the core, year over year the change is 2.3% Now remember the Fed is saying their target is 2% When Janet Yellen testified this week she said that she's confident this week that we're going to hit her objective Well, we've already surpassed her objective