Inflation Hits a 40-Year High–And Businesses Ponder the R-Word | Inc.com


While the cost of capital remains relatively inexpensive and consumers keep their foot on the pedal of the economy, the recent inflationary surge will likely drive the Federal Reserve to act to cool the economy. The big question: Can the Fed apply the brakes without slowing the economy into a recession.

In March, inflation rose 8.5 percent, a 40-year high, according to the latest reading of the Labor Department’s consumer price index, or CPI. Meanwhile, groceries surged 10 percent in March from a year ago, while food overall rose 8.8 percent. Used car prices are more than 35 percent higher than they were a year ago, dropping slightly since January, and nationally a gallon of gas is currently hovering at around $4, up 18.3 percent in March and nearing a record set in 2008.

Read More

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s