“When prices rise, that is a sign that the economy is strengthening” - Ben Bernanke
OR, it’s a sign that too much liquidity is being pumped into the economy to prop it up.
Summer of recovery #4! Yea!
When I see Shadowstats.com unemployment falling, then I'll believe the economy is recovering. But even that wouldn't necessarily be a good recovery. Real wages are falling, eventually labor supply will equal labor demand again. The question is at what wage.
Price rises will not stick or even be attempted if real wages are actually dropping.