"inflation up by the largest amount in 17 years" No shit, Sherlock.

[in_cog_ni_to]

Inflation Jumps in 2007
By MARTIN CRUTSINGER, AP Economics Writer
1 HOUR AGO

WASHINGTON - Higher costs for energy and food last year pushed inflation up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.

Consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006, the Labor Department said Wednesday. Consumers felt the pain when they filled up their gas tanks or shopped for groceries. Prices for both energy and food shot up by the largest amount since 1990.

In a second report, the Federal Reserve said that output at the nation's factories, mines and utilities showed no growth in December, adding to a string of weak economic reports showing that the economy was slowing at the end of last year.

The unchanged output in December was the poorest showing since industrial output actually fell by 0.5 percent in October. Output had been up by 0.3 percent in November.

The December weakness reflected flat output at U.S. factories, a tiny 0.1 percent rise in the mining industry and a 0.2 percent drop at the nation's utilities.

The Consumer Price Index rose by 0.3 percent in December, slower than the 0.8 percent in November, as food costs were flat for the month and energy prices rose by 0.9 percent after an even bigger 5.7 percent jump in November.

Outside of food and energy, inflation rose a more moderate 0.2 percent in December. This measure of core inflation rose by 2.4 percent for all of 2007, down slightly from a 2.6 percent increase in 2006.

The Federal Reserve is closely watching to see whether the jump in food and energy becomes more widespread and starts pushing core inflation higher.<snip>

http://finance.comcast.net/www/news.html?x=http://www.comcast.net/data/news/2008/01/16/862257.xml

[Atman]

1. But the economy is doing GREAT!

Bush says so! Heck, ALL the rich guys say so!

.

[MorningGlow]

2. I am CONSTANTLY shouting "No shit, Sherlock" to the news these days

The only MSM news I'm exposed to is CNN Radio News, and only because it's on the same station as Air America (odd pairing, no?) And at the top of the hour, I'm suddenly hearing all these reluctantly reported news stories about the economy. "It APPEARS that the economy isn't doing so great for some folks after all..." Ya don't say. Little late to the party, aincha? :eyes:

[Wednesdays]

3. But food and energy don't count

So, really, inflation is actually very mild. So, go ahead and go shopping!

:sarcasm: