Archive for the ‘cost of living’ Category

Return of Inflation?

March 28, 2008

By Rich Lowry
March 28, 2008

Beneath the headlines of Wall Street’s financial crisis lurks the economic killer for ordinary Americans — inflation.

It steals from the pocketbook of every American consumer, in an across-the-board regressive tax hitting especially hard those who spend most of their income on food and energy. It cuts into profits and washes away savings. And it has a self-perpetuating dynamic — once people become habituated to inflation, it’s devilishly hard to stamp out.

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China’s Inflation at 12 Year High

March 11, 2008
By JOE McDONALD, AP Business Writer 

BEIJING – Soaring food costs drove China‘s inflation to its highest level in nearly 12 years in February, according to data reported Tuesday, raising the risk of unrest as communist leaders prepare for the Beijing Olympics.

Chinese workers eat a meal in Beijing, Tuesday, March 11, 2008. ...
Chinese workers eat a meal in Beijing, Tuesday, March 11, 2008. China’s inflation rate jumped to a new decade high of 8.7 percent in February as food costs soared after winter storms wrecked crops and disrupted shipping, the government said Tuesday.
(AP Photo/Ng Han Guan)

The 8.7 percent rise in the consumer price index over last February exceeded forecasts and raised the likelihood of interest rate hikes or emergency steps by Chinese leaders, who already have imposed price controls on food.

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