In April inflation accelerated to its fastest annual pace in 2 ½ years. Gas prices and food prices continue to hit consumers. The Consumer Price Index, the government’s key inflation measure, rose 3.2% over the last 12 months ending in April 2011. This report from the Labor Department reflects the biggest 12-month jump since October 2008.
For months now, FED chairman Bernanke and his supporters have downplayed the recent increase in U.S. inflation. He said that overall consumer price increases reflected spikes in oil and other commodities that were unlikely to last.
Why is Mr. Bernanke downplaying Inflation when anybody who shops for food or puts gas in their car knows that it’s here now and has been accelerating since 2008 as the Labor Department report reflects.