Posted on 09/07/2012 6:05:37 AM PDT by blam
Is that you Howard Johnson?
Inflation is not the rise of prices in one or more commodities or goods. It is a GENERAL rise in prices which affect almost all of them.
There has been price increases in some foods: breads and fruits for example; energy (gasoline but not natural gas), but these have been overshadowed by the collapse of real estate and construction.
In a true inflation wage increases are higher. Wages have not shown any increases above the trend line. Median household income has, in fact, fallen.
Since we are in a floating exchange rate regime for international monetary relations which makes predictions wrt to domestic monetary effects difficult. We have had predictions of increased inflation for over ten years and it has not occurred.
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