January 18, 2007

IF IT WERE ANY MORE OUT IT WOULD BE DISCO:

Inflation down - but far from conquered: 2006 saw prices rise at their slowest pace since 2003, but economists see a recovering economy (Ron Scherer, 1/19/07, The Christian Science Monitor)

"It's too early to declare victory on inflation," says Richard DeKaser, chief economist at National City Corporation in Cleveland. "Inflation may be down, but it's not out."

On the surface, the inflation numbers appear to be relatively benign. Thursday, the Labor Department reported that the December Consumer Price Index rose 0.5 percent, reflecting a hike in the price of gasoline. The so-called core rate of inflation, the inflation rate without food and energy, rose just 0.2 percent in December. However, economists are quick to point out that so far in the month of January, the price of energy is down substantially, reflecting the warm winter. "Most people have probably forgotten the rise in December already," says Mr. DeKaser.


Posted by Orrin Judd at January 18, 2007 9:01 PM
Comments

Didn't someone somewhere say something about "fighting the last war"? For chrissakes, it's been 30 bloody years . . .

Posted by: Jim in Chicago at January 18, 2007 10:11 PM
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