Doomed? Hmmm. Maybe not.
Their prediction of 2.5% inflation sounds pleasantly optimistic. I can only hope they are right, that the actual inflation rate of 4.1% for all of 2007 goes down to only 2.5% for all of 2008.
The high cost of oil, excluded from core inflation, has yet to really ripple through the economy from transportation to manufacturing. I guess they are saying despite massive appreciation in energy cost, we are going to see inflaction fall back well below 2007 levels. Umm... OK.
I sure hope so.