Back in February, in Smells like Stagflation, we noted that most companies were planning to increase prices. Yet businesses were not planning wage increases.
Today Bloomberg reported on this troubling scenario, which appears to be playing out.
The consumer price index rose 2.7 percent for the year that ended in March, the fastest 12-month pace since December 2009. Average hourly earnings, adjusted for inflation, fell 1 percent during the same period.
And the real picture is almost certainly worse than that 2.7% number indicates, as explained here.
http://www.wealthwir.../headlines/1063
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