December 17, 2014

WHO WILL BREAK IT TO THE LIBERTARIANS?:

Inflation basically does not exist (Paul R. La Monica   @lamonicabuzz December 17, 2014, CNNMoney)

If you still have one of those Whip Inflation Now buttons lying around from the 1970s, you can probably throw it away. Inflation pretty much doesn't exist.

The government reported Wednesday morning that consumer prices have risen just 1.3% over the past 12 months. When you exclude the prices of food and energy, prices were up just 1.7%.

Overall prices fell 0.3% in November, driven largely by the dramatic fall in gas prices. This is the biggest drop in the monthly inflation rate and gas prices since December 2008. Prices actually rose 0.1% last month when you factor out oil and food costs. [...]

And with inflation being so low right now, Americans do have more purchasing power. Although average wages are up just 2.1% over the past 12 months, that's still much higher than the increase in consumer prices.

Posted by at December 17, 2014 6:51 PM
  

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