As I reminded you the other day, Ben Bernanke isn't worried about inflation. That's good to know, but what are some other facts that we can look at to determine where prices and / or purchasing power are headed. Two indicators that are relevant to this topic are core inflation (everyone's favorite to point to, since it excludes those pesky inflationary items food & energy), and income.
I'm no Phd (which according to some economists who lose millions disqualifies me from even discussing economics), but if core inflation is rising, and personal income is dropping, it stands to reason that prices normal folks pay for goods and services are more expensive than yesterday - but maybe they'll change the definition of inflation soon too.
Today Tom Keene discussed these factors with a JP Morgan economist - if you don't focus on him talking out of the side of his mouth, you'll notice he doesn't buy that there's inflation either. He also really wants to say the Federal Reserve can create individual demand, but stops just short...