Friday, January 14, 2011
Inflation increases to 1.5% for December
Here is a report from CNN about the current inflation rate. The increase to 1.5% is important for a couple reason. First it shows signs of life, people are starting to buy stuff. Second, it might send a signal to the Federal Reserve it's time to start raising interest rates. The Federal Reserve has set short-term interest rates near 0% which resulted in mortgage, car, and student loan rates being at the lowest interest rates ever. As consumers start purchase more stuff the Federal Reserve will need to be careful not to let inflation creep over 2-3%.