Inflation | St. Louis Public Radio


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The end of the year is always a time to take stock of what has transpired during the past year and what is likely to happen in the one about to begin.  Let’s do so by considering several key economic measures.

Economic expansion limped along for another year.  Gross Domestic Product (GDP), adjusted for inflation, is the best measure of the economy’s total output. It increased this year, but not nearly as fast as many would hope, especially three years out form the end of the Great Recession.

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The costs of goods and services in the St. Louis region rose 2.5 percent between the last six months of 2009 and the last six months of 2010 - more than double the national rate over that same time.

Though the Bureau of Labor Statistics data show electricity prices going up 13.1 percent and motor fuel going up 10.1 percent, bureau economist Jacqueline Michael Midkiff says they weren't the real drivers of the increase.

This article first appeared in the St. Louis Beacon, Jan. 2, 2009 - The start of a new year always brings the promise of change. After 2008, we really need it. A new year also brings out the perfunctory prediction column. Instead of putting my reputation on the line, I will let the market make the prediction.

This article first appeared in the St. Louis Beacon: July 21, 2008 - What if we were to go to the grocery store only to find it closed? What if we were to find all the grocery stores closed - no workers and no food?

Societal breakdown would come pretty quickly. Envision hungry people forming roving bands to break into houses to get canned food - maybe, even dog food.

This article first appeared in the St. Louis Beacon: June 25, 2008 - The Federal Open Market Committee (FOMC) announced on June 25 that it would hold the interest rate on banks' overnight loans at 2 percent. It also warned that inflation will get more scrutiny in future meetings. What the economists on the committee fail to comprehend is that actions really do speak louder than words.