For those who are unconcerned about inflation and instead worried about deflation then this chart compiled by Reuters using figures from the Bureau of Labor Statistics (BLS) should be quite interesting. It shows price inflation reaching double digits since the financial crisis in 2008. Notice how everything has gone up from housing to education.
Like this article? Get ECN delivered to your inbox daily. Subscribe here.
Eugene Patrick Devany says
Net wealth is down 70% since 1995 for half the families in the U.S. A big reason is due to debt for higher education. The chart above helps to explain the problem with a 32% increase in education costs in just six years. Education has lost its value in more ways than one.
J says
Today’s release of the New York state factory activity indicates a tumble into recessionary territory. Our multi-national companies can’t compete at current dollar levels. Just about every basic industry in the US is in recession and yet the dollar is up today. This makes no sense to me. What makes sense is that the longer the dollar levitates at these levels, the worst the recession will be and the harder it will be for the US to dig itself out.
With the above environment it’s almost incomprehensible to think that the FED would be stupid enough to raise interest rates in September. Instead the FED should forget about commodity price inflation, the value of the dollar or the price of Gold and concentrate on getting the economy and its basic industries moving again. Meanwhile, the government should bring down and regulate the cost of pharmaceutical and generic drugs, hospital expenses, health care insurance and education.
If the above is done maybe we could have a real recovery and there won’t be a need to elect Bernie Saunders.
brent mulholland says
Double digit inflation over a 6 year period? My GOD, that must mean ~2%/year! Someone must stop this madness!!!