The Fed's Expectations for Goods Inflation

The price of a good in Walmart or any other retailer is obviously a function of the price of transportation since it's usually not manufactured locally. We've gone from an index of about 5000 to now just above 1000 in the average freight rate from Shanghai to LA or Rotterdam in Holland. And that is essentially what I think is on the cards for the first half of this year. Very rapid deceleration in the price action of goods due to a substantial price drop in the price of Transportation, which is a clear game changer to the outlook for goods inflation.