Retail Inflation Simmers As August’s CPI Index Is Called “Tame”

Retail Inflation Simmers As August’s CPI Index Is Called “Tame”

NEW YORK, NY - MARCH 20: A classic pastrami sandwich is viewed at Katz's Delicatessen on March 20, ... [+] 2015 in New York City. A pastrami sandwich at Katz's will now cost $21. 50 with tax due to the rise in the meats price. Beef prices increased 19% in January and are expected to keep climbing. (Photo by Spencer Platt/Getty Images) Just released - the August Consumer Price Index (CPI) indicated an 5. 3% inflationary increase over last year (up . 3%) and the index (less food and fuel) increased 4% (up . 1%). While pundits labeled this "tame" it is hardly a surprise for anyone who goes shopping - as prices do continue to rise, as compared to last year. The report does, however, beg the issue of how the Fed will respond to the money they continue to pump into the economy, and how Congress will react to spending bills that are on the floor. Looking at all the issues combined, one really has to ask: if inflation continues to rise (albeit slowly) - are headed towards a period of "stagflation" like we had in the mid-1970's? It seems that deflation, inflation, (and now "stagnation") have replaced