The growth in manufacturing in the U.S. has been flat. Despite this, the Empire State Manufacturing Survey noted that input costs—oil and commodity prices for manufacturers—has risen steadily over the last few months, with February’s high level not seen since the summer of 2011…more rapid inflation (source: Federal Reserve Bank of New York). Import prices of goods to the U.S. rose 0.4% in February and, although higher oil prices can be blamed, goods and services imported from overseas also contributed to the rise. From a year ago, import prices have gained 5.5% (source: U.S. Labor Department)! More rapid inflation. In China, their latest Purchasing Managers’ Index for March showed that their input costs (cost of goods) were flat, but that inflationary pressures remained high (source: Markit Economics). The index noted that input costs—oil and commodity prices—have been rising over the last half of 2011; rapid inflation. In India, their latest Purchasing Managers’ Index for February revealed that their input costs—oil and commodity prices—are rising at a historically rapid inflation rate. The rapid inflation rise in input costs has persisted for the last six months. As with China, both countries are increasing their prices to compensate, which is why import prices in the U.S. or these goods and services are higher. In Europe, their March Purchasing Managers’ Index revealed the steepest rise—again, rapid inflation—in input prices since the summer of 2011 (sound familiar?). The inflation rate recorded matches the highest long-run average in its 14-year history! Just so readers don’t get the wrong impression that it is just the troubled nations in Europe experiencing rapid inflation,Germany’s Purchasing Managers’ Index also reported input costs that have accelerated—i.e. rapid inflation—for five straight months to reach levels not seen since the summer of 2011. Countries like England and Hong Kong have also experienced rising input costs when they reported their respective March Purchasing Managers’ Index. Hong Kong has been experiencing persistence rapid inflation in its input costs for manufacturers for over 30 months now! It is easy, dear reader, to blame oil for the rise in input costs and therefore conclude that the rapid inflation is temporary. However, as the reports clearly illustrate, oil is only part of the acceleration in the inflation rate. Almost all commodities that manufacturers use are increasing in price, which places margin pressure on manufacturers and pushes them to pass on those higher commodity prices to consumers. These higher input costs—say it with me: rapid inflation—are global in nature and have been persistent, on average, for the last six months. This is not temporary, as they show no signs of abating and, in many cases, the inflation rate is accelerating. (Also see: Will the Real …