Friday, February 11, 2011

Inflation and Relative Price Levels

Inflation today remains fairly low (around 1%), but many people are confused because they are seeing reports of rising prices (food and commodities). How is that inflation is low, while prices are rising? Comes down the confusion of inflation with relative prices. Here's a good post (a bit more technical).

1 comment:

  1. This is the biggest trouble for traders that we can’t really judge things correctly and if we go with just assuming or predictions then it could lead to serious losses. I am lucky that I work with OctaFX broker where they have excellent news and analysis update available which means I can always get right news and following that has mostly given me profits and it’s also completely free, so that is what helps me much more to work easily.