retailers, the markets are fairly brilliant, if you like. i like your sunny outlook but there is still a long way to 90, there is still a long way to go, isn t there? the target is 2% for most central banks for inflation and yet around 10% of the uk, it s around 6% in the us, and so all of that has to match, doesn t it? before banks are going to neutralise borrowing costs? that s absolutely borrowing costs? that s absolutely right. - borrowing costs? that s absolutely right. the i borrowing costs? that s| absolutely right. the us borrowing costs? that s - absolutely right. the us has very much a big head start when it comes to peak inflation. there inflation peaked injune, july in the summer whereas here in the uk and we have the energy price cap, uncertainty, yes energy prices have fallen back quite sharply but grocery price inflation is still very, very high. and markets are very much a front running mechanism and i think at the moment what they are doing as they are pricing in the
of the rate of growth in recent months. do you have any sense looking at data that it is reached its peak? oh, yeah it s reached his peak but at the chart shows at plus 8%, food is still above 10% year-over-year. so we ve reached a peak inflation, but it is going to take time to ease back to just a flat level of price increase and unfortunately the way that the global supply and demand situation and labor markets and climate situation, i don t think we re going to see a significant decline in food prices in the foreseeable future. goodness. well you mentioned the grain situation in ukraine. it shows we ve got a global economy here on a lot of these issues. there is a u.n. broker deal that does allow ukraine, which feeds large portions of the world to export grain.
inflation at the wholesale level and shows how much it costs to make products before consumers have to buy it in the stores. so, it can be a leading indicator of what is to come. let s bring in charles payne now, host of making money on fbn. big take away, charles. make peak inflation, that s the good news. bad news it does not mean it s coming down any time soon. maybe the worst is over, but you know, we are looking at a long, long trek, you know, this is the kind of inflation that rears its head as you mentioned once every 40, 50 years, and it s still going to be a major problem. sandra: pull up the big board, some reaction in the markets. you think the markets perhaps are somehow reading it the same that this is peak inflation, maybe it s not going to get any worse, but it could hang out for a while, this nice knee jerk reaction, dow has given back about 90% of its gain, and oversold stocks. what s countering the numbers, whether it s cpi, and ppi, the