QS - Inflation Fears Continue To Mount

• One reason behind rising interest rate fears is that import prices continue to rise. Overall, import prices have risen 3% in the past 12 months, so inflationary pressures continue to build.
• Export prices rose 1.6% in February, following a 2.5% surge in January. In the past 12 months, export prices have risen 5.2% (the highest since June 2018), so inflation is brewing, which is putting upward pressure on T-bond yields.
• Retail sales plunged 3% in February, which was substantially below economists' consensus estimate of a 0.4% decline. The culprit behind the plunge is bad weather due to the freeze that enveloped much of the center of the U.S., causing electrical blackouts.
• VW's "power day" last week, with the announcement of six gigafactories making batteries with multiple suppliers, like Northvolt, plus thousands of new fast-charging stations in Europe, China and the U.S. (via Electrify America), has sent shock waves around the auto industry.

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