For something we’re told is “transitory,” inflation sure is persistent. The latest evidence arrived with a jolt Wednesday when the Labor Department reported that consumer prices jumped 0.9% in October, or 6.2% from a year ago and the fifth straight month higher than 5%.
That’s also the fastest rate since 1990, despite reassurances since March from the White House, Federal Reserve and Keynesian economists that inflation would soon vanish. It follows Tuesday’s report that wholesale prices rose 0.6% in October, or 8.6% from a year earlier. Producer prices flow into consumer prices, assuming businesses believe they have enough market power.