Consumer Prices
A few looks at how recent prices changes are impacting various sectors:
via Brian Jacobs
The year over year gains are nearing the post Katrina levels of October 2005:
Courtesy of Barron's/Econoday
Wednesday, February 20, 2008 | 11:42 AM | Permalink
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Thank you for not referring to price increases as inflation. It's time to raise the level of the game.
Price increases are a function of supply and demand. Inflation is a function of the money supply, broadly defined. Interest rates can affect inflation. They can not affect price changes caused by supply and demand factors.
While the grocery buyer just notices higher prices and doesn't care why, central bankers should be able to tell the difference.
As long as competition keeps down the inflationary expectations so feared by central bankers, low interest rates are a non event. The weak dollar is self correcting over time (probably a long time as it appears now).
Posted by: cinefoz | Feb 20, 2008 11:53:55 AM
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