Wednesday, May 14, 2008

What Inflation?

According to the media, this morning's economic news tells us in no uncertain terms that there is no inflation. Check this out:

Main headline from a major financial site - Inflation stays caged in April

And now these sub-headlines:
  • Consumer prices overall rise just 0.2% — half that when food and energy are excluded.
  • Food prices see biggest increase in 18 years.
  • Inflation likely to rise in 2009, mutual fund managers believe
Anyone confused? Better yet, anyone holding back on purchases of some items to pay for the increases in bagels, pizza, beer, rice, milk, gasoline and heating oil. Yes, these are the "volatile" food and energy components of inflation but they are now spilling over into the rest of life. People are not buying other stuff so price pressures go down yet who has more money left at the end of the month now than they did last year? Not me.

Inflation is here. The charts have been talking about it for a year and a half and all the government and economic wonks out there probably don't live in blue collar neighborhoods.


Anonymous said...

See the following for the veracity of govt economic statistics

Michael Kahn said...

I can hear Richard Burton now!