We have just received another round of steel price increases. Plate and carbon sheet is going up $260 a ton on June first, an single increase of over 20%. These products will have doubled in price in only 6 months. Scrap is at an all time high.

These are the industrial raw materials that drive construction and machinery manufacturing. Think cars, refrigerators, tools.

The new Macon Diner on Tom Hill Blvd is great and like the wonderful Greek diners up north the portions are enormous, yet food costs are hurting them. Wheat is also up nearly 50%. They could cut portions a third and no one would know.

Oil prices effect all products delivered by trucks, as well as products like asphalt and plastics.

It is hard to see how inflation will not start taking off. Holders of long term bonds beware.

HKO

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