That is, price inflation: the cost of goods and services.
In the last two years, according to Intuit, Americans are reaching deeper into their pockets to cover family-related expenses. Given the current concerns over dis-inflationary pressures, we thought the following infographic might highlight just where that hidden liquidity-/credit-fueled inflation is leaking out.
Of course, according to Mr. Bernanke and friends, inflation is an ‘acceptable 2%,’ in accordance with their specifically stated target.
Even if we were to accept his figure, you might not want to sit down and do the math on what that percentage is over the average person’s working lifetime (about 40 years). The bottom line: NO amount of inflation is ‘acceptable’ at least not to all of us who aren’t bankers.