Growing evidence suggests American consumers, businesspeople, and political leaders should all be bracing for double-digit inflation, probably as early as 2009. The relative price stability of the past 15 years is giving way to worsening inflation, despite the recent softening of oil prices. The Consumer Price Index for all items shows the inflation rate averaged 2.6% a year from 1992 through 2007 but has doubled since January, reaching an annual rate of 5.6% in July. By next year, the monthly figure could hit double digits, and the inflation rate for 2009 overall could triple 2007’s 2.85%. I say this not only because I have looked at a broad range of statistics that point in this direction. I also run a private equity investment firm that owns companies in a number of industries-including restaurants, the manufacture of gardening tools, oil and gas exploration services, and distribution of entertainment products such as books and videos-that are already being forced to pass price increases on to the consumer. The skyrocketing price of oil is obviously a central element in the accelerating price spiral. But a sea change in China’s role is beginning to have a huge impact as well. Increasing […]