Today’s Inflation Report

The government reported that inflation last month was the lowest since the Truman administration. I don’t get too worked up over the monthly inflation reports. I think too many market watchers overrate the threat of inflation.
The fact is that we haven’t had a serious inflation problem in over 20 years. Some prices will rise and fall, but in general inflation isn’t a problem. When you look at the “core rate” of inflation, which excludes food and energy prices, inflation has been well-contained for a long time.
Don’t get me wrong. Inflation is bad news. What Kryptonite is to Superman, inflation is to stocks. But as for now, there’s no real threat of inflation on the horizon.

Posted by on December 15th, 2005 at 12:34 pm


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