Rapidly surging inflation, ultimately means everything from food, energy, housing to transportation prices have gone up this year at their sharpest pace since 1991. That trend is likely to continue with many economists now forecasting that inflation will climb to between 6% and 9% by year-end.
Looking ahead, the hot inflation data now puts huge focus back on the Federal Reserve.
Trader’s attention has now shifted to Minutes from the Fed’s recent monetary policy meeting. The minutes are expected to provide further clarity into the central bank’s view on surging inflation as well as fresh clues about the highly-anticipated wind down of their massive quantitative program.
Elsewhere this week, U.S Retail Sales data will be another major focal point for traders, especially as consumer spending drives 70% of the economy and the sentiment reading is a very closely watched gauge that will play a critical role in the timing of the Fed’s tapering plans.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: