Book your ticket to happiness with Sun Express Airlines. This is John Bachelor speaking with colleague Elizabeth Peake of the Fox News and of the Hill, a columnist at both, about

inflation.

Last week there was a Wall Street surprise of a producer's price index coming in higher than expected inflated prices that producers

pay to produce the material that consumers buy.

I reported to Liz that my conversations with colleague Gene Marks traveling

across the nation speaking to small business associations indicated

that no longer was there a concern about finding enough employees.

Now the concern is overhead costs, the cost of materials, trucking, construction, banking, the necessities of life, the infrastructure of the country.

That suggests that the PPI was not an outlier but was in fact indicative of higher costs, higher prices,

meaning inflation is sticky.

Here's Liz to describe what may be very well the near future, which is that the inflation

number, while tamed, is not going to obey the decline that was expected towards 2% in order for the Federal Reserve

to, in some fashion, reduce the interest rate payments that have risen so precipitously since the spring of 22.

Elizabeth Peak, the Hill on inflation.

Well, and if you look at the Commodities Index, Bloomberg's Commod commodities index, it definitely is up, is definitely trending higher.

How much of that is the kind of cost you're talking about? I don't know, but you know, look, things like electricity costs continue to go up now

oil is going up again which you know that's going to be a political problem for

Joe Biden if gasoline prices go back to five dollars this summer which they well could if this

continues I don't think the inflation side of the equation is solved just yet.

Without a doubt it has gotten better and it's certainly manageable now.

But again, I think the feds are very tough situation right now because they are looking at both these things,

both the employment picture which is softening a little and inflation which is not where they want to

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