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Tuesday, June 12, 2007

Inflation starting to hit Close to Home

For several years inflation has seemed to be holding back despite the rise in gas.  Well those gas price increases are finally starting to filter into some of the basket of items that are used to measure inflation, like the price of milk.

The price of milk was recently reported at over $4 per gallon in Alabama.  Cereal is coming in at over $5 and $7 depending on the cereal.  That means that breakfast for your family of cereal and milk could cost you $10!

That smells a lot like inflation and the weights of these staple items might start to push indexes on inflation up and that will in turn trigger a number of hedge funds to make adjustments for the new reality.  Business as normal has not been normal for a while and its about to get a little less normal as inflation makes its name known again. 

Link to - Got Milk ... Money? It's Not Cheap; U.S. Dairy Industry Under Pressure - Business And Money | Business News | Financial News