Low inflation bright spot in U.S. economy

Last year, overall U.S. prices inched up just 1.1 percent.
Associated Press
Feb 20, 2014

Since the Great Recession ended 4½ years ago, Americans have struggled with high unemployment, static pay and a slow economy. Yet they’ve had one thing in their favor: low inflation.

Well, hold the applause.

It might be unfathomable to people who still bear scars from the double-digit inflation of the 1970s, but what the global economy could use right now is a dose of higher prices.

Overall, prices are barely budging because the economy is still weak. And the reverse may be true, too: Super-low inflation has likely slowed growth from the United States to Japan to Europe. It’s why the world’s central banks would like prices to rise.

Last year, overall U.S. prices inched up just 1.1 percent, according to the Federal Reserve’s preferred gauge. Inflation has stayed below the Fed’s 2 percent target for two years.

 

Comments

From the Grave

There you go...

Contango

Yea, pay no attention to the fact that portions are getting increasingly smaller at the grocery store, but the prices stay the same.

That 14.5 oz. can of tomatoes isn't any different from the old 16 oz. one.

The Big Dog's back

'bout time you started complaining about the rich ripping us off. Welcome aboard.

Contango

" 'bout (snip)"

Agree. Those rich socialists of the political ruling class in DC are rippin' the people off while lying.

OMG.LOL.WT_

For some reason AP wants us to pay more for everything.
Yesterday it was"Downside of low inflation: A weaker global economy"

grumpy

You do realise that the gov't doesn't count food or energy when it figures inflation? They changed what they include in figuring inflation since Carter was president and had those double digit inflation numbers. The gov't doesn't like when the truth gets out so they stopped using food and energy when figuring it. It also makes it harder to see how inflation is compared to past years. The gov't likes to change what they use so comparisons can't be made, or at least can't be meaningful since they changed what they use to count it. Gov't doesn't like the people to know what is really going on. Gov't treats people like mushrooms, keep them in the dark and feed them BS

http://online.wsj.com/news/artic...

Over the past 30 years, the federal government has made a lot of changes to the way it calculates inflation. It's taken place under presidents of both parties. Each change in methodology has come with plausible-sounding justifications. But, as if by magic, each change has had the effect of flattering the numbers. Funny, that.

There are a few reasons investors might be wary of the Treasury market, says Brett Arends. Yet investment strategist Richard Bernstein explains why he's bullish on the dollar. And, advisers can help clients take emotions out of their investment decisions. Dow Jones Wealth Adviser's Veronica Dagher reports.

According to one rogue economist, John Williams at Shadow Government Statistics, if we still calculated inflation the way we did when Jimmy Carter was president, the official inflation figures would look about as bad as they did when ... Jimmy Carter was president. According to Mr. Williams's calculations, if we counted inflation under the old system the official rate wouldn't be 1.5%. It would be closer to 10
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Don't like WSJ as a source do a search on when government changed criteria to rate inflation. Then you can pick your articles.

Contango

Re: he's bullish on the dollar."

During WWI and WWII, assets flowed into the U.S. as a "safe harbor" pushing up the value of the dollar.

The events occurring in the Ukraine may be the modern equivalent of the 1936 Spanish civil war.

Unfortunately, a new war in Europe would be good for the U.S.

Pleased to see that you're familiar with Shadow Govt. Stats. I agree.

grumpy

I don't get that involved in a lot of different policies in politics as I don't have the time and interest to be informed enough to post about them but economics has always been an interest, firearms, farming, and some others, social issues not so much. I like numbers. If I post on them I usually have read and understand the particulars.

Gov't stats get slippery when they change the criteria they use to count it, be it inflation, or the number of acres farmed in a particular way, organic, no-till, min-till, pasture, forested and whatnot. Gov't likes to change it so the people are kept in the dark and fed $hit, treated like mushrooms.

Contango

Re: "economics"

Historical-economics.

The U.S. is not an economic island.

"What has been will be again,
what has been done will be done again;
there is nothing new under the sun." (Eccl. 1:9)

pntbutterandjelly

I digress with this article. I know for a fact that propaganda is rising at a faster inflationary rate than most people can comprehend or even attempt to. "That" in itself can be more expensive as any increase in goods and services. "Cover the shite' with honey and call it candy. They'll gobble it up, fall asleep and wake up feeling good about life."

kURTje

So true pntbutter. So glad that I produce most of my food & do for myself. Walk independent. That's what many Americans are scared of...work!

grumpy

R

grumpy

Re: " Walk independent."

Is that why you get that gov't check for, walking independent?

kURTje

People like us serve America/military. You?

Contango

Re: "People (snip)"

For a couple yrs. of service and you're still gettin' a taxpayer funded check?

What for?

If you're receiving a taxpayer funded check how do you conceivably "walk independent"?

grumpy

4 years. I answered this for you before. So you don't walk independently.

Dr. Information

People that served this country for the right reasons do not have to brag about it or bring out the I served card when they are backed against the wall.

No different than the person who goes to church, gives $200 every Sunday and then has to let the entire congregation know what he gave.

Its called filling an insecurity hole, check into that kurt.

kURTje

He asked nosey. Now go talk with your criminal friend(s). What did you ever do besides *itch?

Contango

Re: "He asked nosey."

Then why not answer the question kurtie?

kURTje

It was troll. Stop being a pdb.

Contango

Re: "It (snip)"

Afraid to answer eh, kk?