Friday, January 15, 2010

consumer prices rise in 2009

According to CNN.com, consumer prices rose 2.7% in 2009. The price of gasoline also rose 50% during the year. The article seems to say that the price of gas drove up the price of consumer goods. This makes sense, considering transportation costs would obviousy increase, as well as any the cost of using any gas operated equipment in production. But, actually, only the headline says that the rise in gas prices prompted the rise in consumer prices. The rest of the article doesn't reference that connection. All it says is "The Consumer Price Index, the government's key inflation reading, rose 2.7%..." So it's inflation that made consumer prices rise? Or did it make both rise? I don't know, I'm not an economist. I have no idea what I'm talking about. But it's something.

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