No evidence of inflation in the American economy, unless you look at the cost of the commodities which people must actually buy. Or the continuing decline of the dollar against world currencies. Or the predictable spike in the (dollar-denominated) price of gold. Or the record-high (dollar-denominated) prices for wheat and oil and lead. TBP quotes from Newsweek:
Catch that bit about “core inflation”? That’s Fedspeak for: inflation is under control, unless you look at the costs of things that are going up. The core rate excludes the prices of food and energy, which can be volatile from month to month.
This is one of my longstanding beefs with economics as it impacts the news and the lives of ordinary people (see also national unemployment figures and “cost of living” calculations for geographic area X). It doesn’t matter what the excuse is for excluding food and energy from the calculations for the core inflation rate. These costs are two huge components of most people’s everyday expenses, and the fact that our leading economists choose to simply ignore that because it makes the curve a little smoother is completely baffling.