June 16, 2004

Inflation rips at 5.5% annual rate. Another PrestoPundit "I TOLD YOU SO" moment. Next stop -- the Federal Reserve and rising interest rates.

Here is your carnival of inflation coverage:

"Most fund managers believe the Fed, which says it wants to raise rates at a "measured" pace, is dangerously behind the curve, keeping the accelerator too close to the floor and risking runaway inflation." "Wall Street vs. the Fed: Investors and the Fed disagree about inflation" -- CNN Money.
"A cab ride in New York now costs 26 percent more than it did a year ago. In Omaha, Neb., the price of Oxboard, a stronger form of plywood, is up 187 percent over the past six months. Since January, buying a $10,000 used car has cost about $320 more. Don't even mention the price of anything sold by the gallon. If you think things are getting more expensive, you're right. While two months ago jobs were the biggest worry, inflation is now emerging as one of the main threats to the US economy .. "This isn't pretty," says Bob Gay, chief economist at Commerzbank Securities in New York .. ". "Inflation a top threat to economy" -- Christian Science Monitor.
"Prices for commodities such as copper, soybeans and cotton, which fueled Wall Street inflation worries at the beginning of the year, have cooled off." "Signs of Inflation. Or Not." -- CNN Money
"Food and beverage prices rose 0.9 percent, the department said in its report, the biggest monthly increase since 1990." "CPI jumps but in line with forecasts" -- CNN Money.
"Our general view is that inflationary pressures are not likely to be a serious concern in the period ahead," Mr. Greenspan said."Consumer Prices Surge at Fastest Rate in 3 Years" -- NY Times.
Posted by Greg Ransom