Monday, August 04, 2008
preemptive rate hikes?
The biggest increase in prices in almost three decades eroded consumers' buying power in June, diminishing the boost from the government's tax rebates.
Consumer inflation climbed 0.8 percent, the most since February 1981, the Commerce Department said today in Washington. Spending increased 0.6 percent after a 0.8 percent gain in May.
real spending continued to decline -- this is a recession, after all -- but inflation is out of the barn. this is the 1931 scenario.