Inflation: Bottlenecks galore

The Baltic Dry Index of shipping costs for dry bulk goods has doubled in the past year. At 7003 on August 3, it is more than four times its 1998-2002 average. That rise will soon be reflected in inflation statistics. There is thus little room for Federal Reserve Chairman Ben Bernanke to cut interest rates, even if debt market carnage tempts him. The principal drivers of the rise in shipping costs are Chinese imports of iron ore and coal and exports of steel and cement. The port of Newcastle, NS...