You say that as if it should somehow discount the news. Are you saying that one wholesale commodity is distorting the overallpicture? But isn't the cost of energy embedded in the price of just about everything? When energy makes the cost of goods sold go higher, doesn't that mean either a)profits falter or b)prices go up?
Yes,
Higher prices for all goods are a logical consequence higher fuel prices.
Prices go up and profits falter. the amount that profits falter and prices increase are a function of:
1) Mangent tolerance to pricing pain and
2) Price elasticity of demand.
Well by your mindset if prices go up, inflation happens. But we all know that isn't true, the Fed said inflation was only 1% (but my bank says 2.5% hmmm??) and if salaries remain relatively EXACTLY the same, does that mean we're all richer?