[lbo-talk] Fwd: 1970's redux and where do we go from here?

Doug Henwood dhenwood at panix.com
Sat Apr 22 11:25:49 PDT 2006


Seth Ackerman wrote:


>But it's only being driven by oil this time. Core inflation isn't
>particularly high. Inflation isn't built into the structure of wages
>and prices like it used to be.

No it's not. But Wall St is getting a little carried away looking only at the core (which excludes food & energy); that strips away almost a quarter of the index's market basket. The headline CPI is at 3.4% year-on-year, which is well above the 1-2% that used to be regarded as price stability.

Doug



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