May 31, 2013

INFLATION IS ALWAYS AND EVERYWHERE A FUNCTION OF WAGE PRESSURE:

With All Eyes on Fed, Prices Barely Rise (JOSH MITCHELL, 5/31/13, WSJ)

Inflation is slowing in the U.S. and elsewhere, despite central banks' historic easy-money programs that some have argued could push prices much higher.

A key gauge of inflation fell in April to its lowest level on record, a reduction that could take pressure off the Federal Reserve to wind down an $85 billion-a-month bond-buying program despite other signs of a strengthening economy. [...]

A strengthening economy should boost inflation over time as consumers demand pay raises and firms gain latitude to boost prices. But considerable slack across the economy--due to high unemployment and weak demand--have kept inflation tame during the four-year recovery.

Posted by at May 31, 2013 9:41 PM
  

blog comments powered by Disqus
« YOUR NEXT CAR WILL BE A VOLT: | Main | BAD FOR BUSINESS: »