Economic Report: U.S. PPI up a larger-than-expected 0.6% in April

Some of you may have seen my posting concerning the lowest trade deficit in 6 months posting. Just to add to that, I have provided a link to the PPI report from this week. Some economists have said that with the yuan is is undervalued by about 40%. This makes all of China's exports extremely cheap for the major consumers such as the US. What could a revaluing of the yuan do to the US economy? Considering Walmart plays a major role in keeping inflation lower, we could see much higher prices. Energy wouldn't be the only contributing factor.

So what can we do? To counter the potential increase in inflation, you may consider picking up inflation protected securities. I recommend taking a look into Vanguard's VIPSX. Although it has already seen a decent run up in the short term, this could be a great hedge pick for the next couple of years. You can't beat the expected 3 year expense projection of just $58 for a $10,000 investment.

Economic Report: U.S. PPI up a larger-than-expected 0.6% in April