We all know that Economists are quirky folks. Here’s what The Economist says about inflation (Feb 5th, 2005):
… inflation remains tame. America’s headline inflation rate was 3.3% in December; the core rate (excluding food and energy) was 2.2%.
Food is things you eat to live. Energy represents costs for natural gas for heating homes; oil primarily for home heating, electricity for heating, lighting and running computers; gasoline for running automobiles. With winter’s sub-freezing temperatures upon us, heating is a big part of our non-discretionary expenses.
Economists seem to suggest that as long as you don’t heat your homes, or eat, or drive your vehicle, or use your computer – inflation is actually very low. Like I said, a funny bunch these economists!