Filed under: Indices, Economic data, Personal finance

We live in the craziest, upside down world you can imagine. In years past at rise in consumer prices threw the markets into a panic, signaling that inflation was rising a getting out of control. But that was then and this is now.

Today the Labor Department said that the consumer price index rose .3% after dropping .8% in December. Voila! The inflation news is now good news. Why is inflation good news? It is good news because it means that we are not deflating. Even Bernake said that we simply cannot have deflation. He stated an inflation goal of 1.5% to 2% for the coming years. You see in this upside world, deflation is when prices fall, and since we don’t want that, we now love it when prices rise — that’s inflation.

Continue reading Is it inflation or deflation?

Is it inflation or deflation? originally appeared on BloggingStocks on Fri, 20 Feb 2009 17:15:00 EST. Please see our terms for use of feeds.

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