A quick look at the news is enough to get anyone depressed. Now there's one more item to worry about: price increases.
As we noted yesterday, the Consumer Price Index, which measures the price of basic necessities like food, clothing and gas, rose .5% in July, a higher than expected number. That price hike was largely driven by an increase in gas prices, which rose 4.7%.
However, gas is far from the only item rising. Fresh fruits & vegetables rose 6.9% compared to the same time last year, its highest increase in three years. Cotton prices have jumped between 10-15%, causing higher prices on clothing.
Of course, this is all at the same time that unemployment remains high and the housing market remains stuck.
Inflation, however, does not appear to be an immediate concern. The core-CPI, which removes some of the volatility from this measure, remains at 1.8%, and below 2% is enough to stave off serious inflation.