No sign yet of relief
Inflation for the first 15 days of February over the same period in January was 1.42%, substantially higher than expected.
This could be a sign that the expected reduction in the rate that will occur because of continued declines in consumption only with a significant lag. Private demand factors are less at work than is the continued growth of government spending.
Moreover, producers and retailers are afraid of possible tax increases and much of the price increase could be due to expectations in this area.
I now go grocery shopping the way I used to when retailers marked up prices overnight. The economy is still pretty much in “free fall” and no one wants to be caught by surprise.
No comments:
Post a Comment