All the inflationistas — and hyper-inflationistas: You missed your window. Inflation was running rampant during 2001-07, and you somehow seemed to overlook that.
Now, inflation is running at its lowest levels in half a century, and its all you eejits can talk about.
“Inflation is also lower than the policy makers’ long-term forecast. The Fed’s preferred price gauge, which is tied to consumer spending and strips out food and energy costs, rose at a 0.5 percent annual pace, the slowest since record-keeping began in 1959, today’s report showed. In their statement last week, Fed officials said inflation measures “have continued to trend downward.”
I hate the core level as a measure of inflation; There is no reason to strip out Food & Energy just because they are volatile.
But keep in mind — the biggest ingredient by cost in a box of Corn Flakes ain’t corn — (not cardboard for the box) it is labor. This is true for many processed products — including food — the biggest input costs are labor.
Consider that as you fight the inflation tape:
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1913-2010 CPI
Click for ginormous charts
Chart via Economagic
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2001-10 CPI
Chart via Economagic
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