Framing lumber prices are soaring as are foodstuff prices. This headline: “Soaring lumber prices add $24,000 to new house price since April”. And my favorite headline: “U.S. Homebuilders Urge Biden to Help Ease Sky-High Lumber Costs.”
We can see where rising lumber costs and foodstuff prices soared after The Fed’s massive expansion of their balance sheet to fight Covid.
Of course, The Fed will say that inflation is not related to foodstuff or energy. But wood? Or is wood the new gold?
Here is the volatility surface for lumber futures.
Perhaps homebuilders should ask Fed Chair Powell for help in easing soaring lumber costs … and food prices.