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Inflation -- here it comes. "The price gains [in core CPI] from February to April, if stretched across 12 months, would be 3.3 percent, a rate not seen since 1993 .. This week's closely watched manufacturing index from the Institute for Supply Management contained some May inflation numbers that were more obviously alarming. Its "prices paid" measure stayed close to April's 25-year high. Its "supplier deliveries" index, a measure of supply bottlenecks, jumped to a 25-year high. "Welcome to the supply shock," said Russell Sheldon, senior economist at BMO Nesbitt Burns. "The economy has outgrown last year's conservative expectations by a mile, generating shortages and widespread price hikes that are large and will have to be passed on to consumers." MORE "Two faced inflation". Posted by Greg Ransom | TrackBack