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View Full Version : Proof RP is right. Inflation tax in full force.




RonPaulFTFW
12-14-2007, 09:34 AM
http://www.chron.com/disp/story.mpl/front/5378557.html


The Labor Department said its closely watched Consumer Price Index rose 0.8 percent last month, the biggest one-month increase since a 1.2 percent surge in September 2005, when the country was hit by rising energy costs in the wake of Hurricane Katrina.

The inflation report showed that outside of energy, price pressures were rising as well. Core inflation, which excludes energy and food, rose by 0.3 percent last month, the biggest increase in 10 months.

The 0.8 percent rise in consumer prices was worse than the 0.6 percent advance that economists had expected. With one month to go, inflation in 2007 is rising at an annual rate of 4.2 percent, far above the 2.5 percent increase in 2006.

The surge in inflation adds another risk to an economy that is already struggling under the weight of a meltdown in housing, a severe credit crunch and faltering consumer confidence.

DRV45N05
12-14-2007, 09:40 AM
And the CPI is an incredibly flawed measure of inflation. And it's finally starting to pick it up.

JaylieWoW
12-14-2007, 10:20 AM
I have only a basic understanding of economics. Something which I am currently rectifying by self-studying the subject.

However, even with my limited knowledge, how in the hell can anyone claim to accurately measure inflation by not including food and energy cost increases? Am I the only one who thinks this is just incredibly DUMB?

noxagol
12-14-2007, 12:21 PM
I have only a basic understanding of economics. Something which I am currently rectifying by self-studying the subject.

However, even with my limited knowledge, how in the hell can anyone claim to accurately measure inflation by not including food and energy cost increases? Am I the only one who thinks this is just incredibly DUMB?

No, but it is the best to leave out to claim that inflation is small because those are the two most affected areas I think.