Told you so…
Dr. J. wrote a while back on the cost of living going up, largely tied to gas prices.
Today, Bloomberg.com writes:
The consumer-price index climbed 0.4 percent, matching the median forecast of economists surveyed by Bloomberg News, after increasing 0.2 percent the prior month, the Labor Department reported today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.
Well duh!
Gas and food prices are up. That leaves less discretionary income, and thus less of a demand for other goods. The price of those goods can’t go up because they aren’t being purchased a demand that would permit higher prices.
My goodness, take Econ 101 people!
Oh yeah, and watch out for the liberals talking about this ‘core measure’ being fine…if it doesn’t count food or gas, there’s nothing core about it!
