Inflation is back, although we have not completely felt it yet. Inflation over the 12 months was 2%, inflation rate in 2014 is 2.4% and in the last 3 months this rate has increased to 2.8%. Actual inflation is accelerating. (Original air-date 8/22/2014)
While inflation over the last 12 months still registers only at a low 2.0%, if we look at the first 4 months of this year the picture changes significantly. The consumer price index, the instrument we use for measuring inflation rose by 1.3% over the last 4 months. This translates into a 5.2% inflation at annual rates. That is if this trend continues for the rest of the year we are going to re-visit inflation for the first time since 2007! (Original air-date 5/16/2014)
Before the Great Recession, inflation was rising at a pretty healthy rate, reaching as high as 5.6%. However, the recession wiped out that inflation alongside with 8.7 million payroll jobs, a booming housing market, more than 500 commercial banks,as well as a large number of other businesses. What Happened to inflation? Does the Federal Reserve have the tools to keep inflation at bay? At what cost? (Original air-date January 17, 2014).