Tuesday, October 18, 2005

Inflation In Sept. Highest Since '80

Another article by the Washington Post notes that high energy prices and rising interest rates are already slowing economic growth.

Consumer prices went up 1.2% in September (or 14.4% annualized).

The winners are (well, besides the oil companies)will be retirees who will get raises to cover the inflation.

Losers are workers who do not get raises to cover the inflation. They are usually the lower wage workers in the first place or, in other words, probably you and I.

...most U.S. workers don't get automatic cost-of-living adjustments to their pay. After taking inflation into account, average weekly wages for production and non-managerial workers -- who make up more than 80 percent of the workforce -- fell 1.2 percent last month, the Labor Department said in a separate report. Those earnings bought 2.7 percent less than they did a year earlier, after adjusting for price increases.

Article also assures us that we will not be going back to the economic turbulence of the 70s and early 80s (Looks like someone got his conference call.) We will just have to bear with higher prices on goods, interest rates, and abysmal spikes in energy.

LOL. It sounds a lot like when they told us a few months ago that we wouldn't be seeing the $2.88 per gallon gas prices that would actually set a record for gas prices over inflation boosted 1980 costs. And then we did even before Katrina.

But corporate controlled mainstream news will tell us over and over again that we just have to bear it, and we will.

Those with any money left will continue to buy their imports and hire teams of immigrants, no matter how incompetent or dishonest.

That's the American way. (cue music)

Also see Wholesale Inflation Soars in September


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