Question: Why Hasn't Inflation Been a Concern Until Now?
Answer: Until now, inflation has not occurred primarily because prices have been kept low by the introduction of China into the world labor market, and higher productivity due to technology. Additionally, the surfeit of aging Baby Boomers has allowed corporations to keep wages low, and therefore they have not raised prices.
As a result, inflationary pressures are felt mainly in housing and oil prices. However, housing is not measured in the CPI, so economists are saying inflation is not a problem if you take out oil prices.
Inflation FAQ
- What is Inflation?
- How Does Inflation Impact My Life?
- Why Hasn't Inflation Been a Concern Until Now?
- Who Are the Major Players in the Battle Against Inflation?
- What is Being Done to Control Inflation?
- How Can I Protect Myself From Inflation?
