Producer Price Index up 22.1% Annually from February to March 2011

The producer price index (PPI) increased a staggering 22.1% for all commodities from February of 2011 to March. This is the leading indicator of future inflation. The index is comprised of components that are used as inputs for production of goods that will later be consumed at the retail level.

PPI up 22.1% from February to March 2011

I wonder if this has anything to do with the fact that since China stopped purchasing US treasury notes the Federal Reserve has been monetizing our debt at rates not sen since WWII? You think?

Monetary base up 26.8% in the last four months.