The Truth About Inflation

Yes, wholesale inflation experienced its biggest surge since 1974. But on close inspection, price increases aren't accelerating

The government's Dec. 19 report on wholesale inflation made for a heck of a scary headline. The producer price index rose 2.0% in November, the biggest jump since 1974. Shades of Richard Nixon! Trouble ahead for Federal Reserve Chairman Ben Bernanke! For a few moments after the 8:30 a.m. news release from the Labor Dept., bond traders acted as if someone had released scorpions on their trading desks.

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