Buffett: We're Doing Things That Would Normally Lead To Inflation

This morning on CNBC, Warren Buffett spoke on the dangers of inflation, which he says is “creeping” into everything.

“Copper has moved up very dramatically,” Buffett said when speaking about taw materials, noting that the price increases will work their way into finished goods. Consequently, the Berkshire Hathaway Inc. (NYSE: BRK-A) chief exec is advising that you buy your underwear now, as he says points to cotton increases that will affect Fruit of the Loom and other underwear producers.

“We bought cotton earlier,” Buffett says, adding that the cotton he received six months ago looks okay, but the cotton he's buying now is more expensive.

“I think it could become a serious problem,” Buffett warned of the overall inflation increases. “We have had an all-out fiscal stimulus….we have got the greatest stimulus going on today.”

“We're doing things that would normally lead to inflation,” Buffett concluded.