I like the rules of thumb; one thing I don;t like in how the media reports anything going up in price is how more often than not it is an indication of the US dollar FALLING. When the dollar falls, everything (gold, gasoline, stocks, groceries) goes up in price. This is exactly what has happened since Obama’s election in 2008 (and subsequent spending spree), and it has been downplayed/concealed by the media.
Everyone is concerned about smaller paychecks due to higher taxes; they’ve already been getting smaller paychecks due to higher costs of everything.
Lost my original reply thanx to Bill Gates's Internet Explorer suddenly folding up -- "errors" you see. Thanx, Bill.
Monetary measures (M1, etc.) were invented to help get understanding of price inflation. Now the people who understand the aggregates, insist that the aggregates ARE the definition of inflation and deflation, and insist with their neck tendons standing out that price inflation has nothing to do with monetary aggregates' behavior.
They've been arguing about whether we are experiencing inflation or deflation for six years now. Meanwhile, our fortunes hang in the balance.
Thanx, guys, for being so clear on the subject. This includes you, too, Shedlock! Prices are higher -- where are your falling prices to go with your academically-defined, Austrian-school deflation, Mish?