Friday, November 12, 2010

No Inflation? Grocery Stores, Gas Prices Tell Different Story

http://finance.yahoo.com/news/No-Inflation-Grocery-Stores-cnbc-1559291069.html?x=0&sec=topStories&pos=1&asset=&ccode=

America, have you figured out Ben and the Federal Reserve as well as the government doesn't work for you yet?
Because if you haven't,
Here's your proof!


From grocery stores to gas stations and most other consumer stops in between, price inflation is shaping up to be the biggest economic story ahead.



Whether it's how much you'll pay for home heating oil or a loaf of bread, don't believe the non-hype: Even if traditional measures of consumer prices aren't yet showing major increases, consumers know what they see.

"It's not good news from a whole variety of perspectives," says Nicholas Colas, chief investment strategist at BNY ConvergEx in New York. "Food inflation is getting very bad and that's just bad news for the majority of consumers who are still stretched. It's bad news for the 42 million people who are on food stamps."

Price inflation is coming primarily from upward global pressure on commodities like the multiple grains that go into food production as well as heating oil and gasoline that power the world's growing economies.

It's also being driven by a weak dollar, which has continued to fall in value as the Federal Reserve has printed more and more money to pay for programs it hopes will stimulate growth.