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Thursday, May 18, 2006
Inflation is good for my paycheck?
Today's Christian Science Monitor has the story: Inflation's rising toll on consumers. We are not imagining it - things really do cost more lately.
In short, prices have gone up for several key items: credit, foreign currency, housing, and the fossil fuels that are a basic cost for virtually every home and business.
So what is the silver lining in this black cloud?
The good news for consumers is that their incomes may be going up, thanks to a tightening labor market. "Thirty percent of [business] owners say there's at least one opening they can't fill," says William Dunkelberg, chief economist at the National Federation of Independent Business.

But recent surveys, he adds, show that businesses are starting to pass higher labor costs along in the form of higher prices. "It's not good."
*Sigh*
posted by Boston Gal @ 8:10 AM  * *

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3 Comments:
  • At 8:25 AM, May 18, 2006, Anonymous Anonymous said…

    It also means that the value of money decreases, so debtors rejoice and savers grumble. Blast!

     
  • At 9:08 AM, May 18, 2006, Blogger mapgirl said…

    With every upside, there is a downside. It's life putting it all into balance.

     
  • At 4:30 PM, May 18, 2006, Blogger Tiredbuthappy said…

    Well, the tightening labor market is good news for us job seekers. I know of at least a few "failed searches" in my field in my city where they just weren't able to find a qualified applicant to fill a job and had to wait and repost the job a few months later.

     
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