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The Feds next move
Essay specific features
Written by:
Earnest L
Date added:
February 9, 2012
Level:
University
Grade:
A
No of pages / words:
5 / 1371
Was viewed:
4923 times
Rating of current essay:
Essay content:
And again in May, the CPI increased another .3%, this for the third month in a row. Coupled with things that are not considered in "core" inflation but obviously matter, growing energy costs largely due to oil that remains high and threatens to go higher as political conflicts with countries like Venezuela and Iran continue and increasing food prices, it's easy to see the dangers these present to both the consumer directly and the danger they posse in "spilling over" into other markets...
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Yet, other indicators seem to show that inflation outside of things like energy and food isn't read to take hold. Recent revisions have shown that labor costs didn't rise as sharply as expected in recent months and productivity is better than first thought. This leaves earning potential solid, hence there isn't much need for rising prices as of yet as the rising costs of things like energy seem to still be getting absorbed...
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