A Picture of Currency Induced Cost Push Inflation

Acceleration phases in the ISM's prices paid to PMI ratio illustrate currency induced cost push inflation quite well.

ISM Prices Paid Index (PP) to National Purchasing Manager's Index (PMI) Ratio:


Observations:
(1) The recent up tick in the ratio is part of greater acceleration that began in 2008.
(2) While the up tick has caught the public attention, i.e. pain of higher gas and food prices, it’s hardly statistically extended. History has shown us that market forces are notorious for pressing ‘pain’ well beyond the comfort zone.
(3) History also suggests that the amplitude of acceleration phases will increase over time. For example, the growing size of the spikes from 1966, 1970, 1974, and 1980. A similar pattern is beginning to reveal itself with little media attention.

Source: ism.ws