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As I mentioned in another comment, food and fuel are not counted when calculating inflation - they are both commodities whose prices are determined by external
by rjsamson 14y ago
As I mentioned in another comment, food and fuel are not counted when calculating inflation - they are both commodities whose prices are determined by external market forces (ie speculation, weather, etc) and do not accurately reflect rising prices due to monetary inflation. Inflation of a few percentage points is healthy - and that's where we are now. Any less and you begin to risk slowing economic growth - currency that declines in value slightly over time gives one the incentive to spend their cash, rather than hoard it.
- lalalalahaha 14y agoTo dismiss food and fuel is simply erroneous. There is a reason why governments push to have them removed from the inflation numbers... they have an economic incentive to lie and maintain their power.
- aaronblohowiak 14y agoit especially hurts the poor (both young poor and elderly, like those on social security.)