The easy-money advocates had a tough summer. In August alone, the price level increased almost half a percent, raising the average annual rate of inflation for the past three months to almost 5 percent. Wholesale prices, especially of raw materials, have also been moving upwards, as has the “prices paid” index of the Institute for Supply Management's survey of the manufacturing sector (the service sector has had more mixed recent results). Across the board, the stats show a broad consensus that we have switched from a deflationary trend to an inflationary one...
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