On top of a possible double dip recession, higher unemployment and the collapse of Europe, now this: Reports that inflation is heading our way. Well, at least the fear of inflation.
The Labor Department said today the Consumer Price Index, the CPI, increased 0.5 percent in July, the largest gain since March, after falling 0.2 percent in June. That was above economists' expectations for a 0.2 percent gain.
In addition, the first evidence of higher prices for certain food produces – ground beef, coffee, cereal – occurred at the beginning of the year.
While many experts are attempting to put a damper on inflation talk – prices usually fall in recessions – some analysts are beginning to worry about the return after 30 years of "stagflation": increasing prices for goods during times of low economic growth.
So, have you seen any evidence of inflation when you go out shopping?