Thursday, February 17, 2011

Growing economy brings whiff of inflation


Since the US began it's weak recovery in 2009 most economist keep the inflation well maintained. But now some businesses have seen stable growth over the last two quarters and now are seeing raw material prices going up because of inflation; which is then passed down to the consumers. In January their was a .4 increase in the consumer price index and is predicted to keep rising this month. This could become a problem if the economist can't bring it to a slower pace.



I think we will still see steady growth this quarter in our economy, and because of that we will see inflation. Yes, we do need it at a slow pace though because people who make a living by hourly wages will struggle if their is too much inflation at one time, because the standard of living won't equal the pay.


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