Yet, further up the pricing chain, producer price inflation for domestic sales of non-food consumer goods increased only slightly to 0.3% in March. A clear sign of a turning point is not yet visible. One way to reconcile the increasing price pressures at the earlier stages with weak producer price inflation of consumer goods is a squeeze in margin.
One reform effort, for example, that is especially difficult for some interests to accept is the Volcker Rule. This rule will restrict banking organizations from engaging in proprietary trading activities and involvement with hedge and private equity funds. It will affect the largest institutions most directly, confining their risk profile and limiting the advantages of leverage that currently drive behavior among these firms.