US wholesale prices jumped sharply in April, which is bad news for shoppers, workers, and stock investors but could create buying opportunities later for people sitting in cash.

• Wholesale prices rose almost three times what Wall Street expected, meaning store prices will likely climb even more in a couple of months.
• The jump goes beyond gas and diesel — service businesses like plumbers and contractors are adding surcharges to pass on their own rising costs.
• The Fed cannot easily cut interest rates while inflation is this hot, and only a stock market crash would force their hand.
• Gold and silver are moving with the stock market right now, not acting as inflation protection, so cash is the safer position.
• Home prices in the most desirable areas are already down 35%, even though news coverage downplays it.

Outlook: Store prices and service charges will keep climbing this summer, weak corporate earnings could follow, and a stock market drop is likely if inflation stays hot.