CPI says inflation is in check

Discussion in 'Economics' started by peilthetraveler, Jun 17, 2009.

  1. http://finance.yahoo.com/news/US-co...01.html?sec=topStories&pos=main&asset=&ccode=

    Consumer prices rose less than expected in May, fresh evidence the recession is keeping inflation in check.

    The Labor Department says the consumer price index increased a seasonally adjusted 0.1 percent in May, below analysts' expectations of a 0.3 percent rise.

    Excluding volatile food and energy costs, core prices also increased 0.1 percent, matching expectations

    Hmmm...So the exclude food and energy, the 2 things we all buy and they what...just see how much cheap chinese goods we are buying now?

    Supply & demand. If people are not buying stuff, there is less demand and prices fall which can really screw up numbers when it comes to inflation.

    And its funny that whenever they historically want to show us how much inflation has affected us over 10, 20 or 50 years, they always use food products like bread, eggs, milk to show how much prices have risen and then they also talk about gasoline too. So take those two items out of the equation and look...The recession is over! Inflation is in check! We just take out the stuff that shows we are having inflation and now it shows we are not having inflation! Yay!
  2. Are you trying to say that inflation is a bad thing right now???
    This is a bad news report... This economy NEEDS inflation (moderate not hyper) in order to improve. The positives we can take out of this is that prices at least did not decline.

    How do you correlate low inflation with the recession being over?
  3. bettles


    "Dad, excluding the F's I made in two subjects, I qualify for honor roll on this report card."

  4. does the CPI also calculate the change in the size of packaging & product or the change in the product quality ... I bet burgers specially at the fast food restaurants shrink by each passing day not to mention that the percentage of cow manure in the meat increases too


    "No you should sue McDonald's for fucking you up!"
    -Will Smith (Film:Hancock)

  5. I was being sarcastic in my post because of how unreasonable that news story was. The sad thing is, people will read it like that. That there is no inflation and they can safely put their money back into treasury bonds when in fact, thats the worst thing they can do right now. I agree we need alot of inflation. Enough to get people to start manufacturing again. I dont know that it will happen with just moderate inflation though. I think we will need hyperinflation.
  6. Why exactly would anyone want any inflation is beyond any logical reasoning unless you know for sure that your income will outpace it.