Inflation moderating?
It occurs to me that in some respects, inflation is moderate.
I know - that's a tough one to imagine. But consider the case of oil. Gas prices last year were $3 on average - exactly where they are today.
http://www.gasbuddy.com/gb_retail_price_chart.aspx
My point is that while gas prices are high compared to 3 years ago, measured on a year-over-year basis, they are fairly constant. So inflationary measures should appear to be moderating.
Add to that the drop in other commodity prices (steel, lumber, aluminum soon), and we would actually say that inflation is moderating.
Where it isn't moderating is food - largely because of unintended consequences tied to the corn ethanol fiasco that is brewing.
I know - that's a tough one to imagine. But consider the case of oil. Gas prices last year were $3 on average - exactly where they are today.
http://www.gasbuddy.com/gb_retail_price_chart.aspx
My point is that while gas prices are high compared to 3 years ago, measured on a year-over-year basis, they are fairly constant. So inflationary measures should appear to be moderating.
Add to that the drop in other commodity prices (steel, lumber, aluminum soon), and we would actually say that inflation is moderating.
Where it isn't moderating is food - largely because of unintended consequences tied to the corn ethanol fiasco that is brewing.
posted by Andrew at
8:33 AM
1 Comments:
Any comments on BX? It IPO'd recently and went as high as 44, is 29 a bottom in your opinion?
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