David C. Rose and Lawrence H. White at Cato.org report that the producer prices rose at an annualized rate of 10% between December and January. The authors explained that this happended because the “Federal Reserve” (it’s not federal and it has no reserves) doubled the monetary base, an unprecedented increase.
We’ve been here before. The authors report that after the Arab oil embargo in the early 70s, the Fed reacted by increasing the monetary supply. Between 1976 and 1980, prices as measured by CPI rose from 5.8% to 13.6%. Since the government calculates the CPI, you can bet the real price rise was much higher. So expect “dollar prices” to increase by more than 10% annually during the next few years.