With the price of oil bouncing ever higher, there are fears that inflation - which created a great deal of misery in the country back in the '70s - is returning. Perhaps it will. I can't help but think that some people WANT it to return and not only see signs of it, but TRUMPET them. Take, for example, this AP story by Martin Crutsinger:
Inflation Soars on Surge in Energy Prices
Scared yet? Ready to start panic-buying before prices go out of sight?
Inflation at the wholesale level last month soared by the largest amount in more than 15 years, reflecting the surge in energy prices that occurred following the Gulf Coast hurricanes.
The Labor Department reported that wholesale prices jumped 1.9 percent in September, led by surging prices for gasoline, natural gas and home heating oil after the widespread shutdowns of refineries and oil platforms along the Gulf Coast. Food prices, which had been declining, posted the biggest increase in 11 months as the price of eggs shot up by a record amount.
Wow. An increase of 1.9% is 'soaring' inflation?
The article goes on to quote Allen Greenspan and cite number of economic indicators to show that inflation may be just around the corner.
It may well be. I don't think that there's any question but that higher fuel prices are going to drive up the price of virtually every other product and service in the country. The question is whether the price increases will be modest or so sharp as to cause real problems for working Americans.
Color me cynical, but I think we know what the AP wants to see.