| i had to do a mini-research project on oil prices for my economics class... this is the first time in history where a rise in nominal oil prices have been accompanied by a rise in long-term prices. that didn't even happen during opec 2 in the 70's..
inflation's 2.5% right now, or 2.0% if you exclude energy and food prices (eg. core cpi).. the increase in core-cpi was the largest since april. my model said that 3% inflation was acceptable and you could get 4.25% real gdp growth. i could email you the work if you're interested..
the issue with inflation isn't that it's going to cause an immediate shot, but rather, one that will slowly accumulate. it's the long-term that's the problem, not so much the short-term.. |