Inflation is rotten to the core - Regardless of what Fed says, prices are rising
30 July 2013, by Irwin Kellner, - Port Washington, N.Y. (marketwatch)

How about giving us three cheers if you really believe that inflation has been vanquished? I can’t hear you!

These days, prices for many kinds of goods and services have suddenly begun to rise.

Some are obvious, some are not. Among the more visible items riding the up-elevator are prices of food, energy and health care.

However, there are many others for which the price increases are less visible but are pinching your pocketbook just the same.

Stealthy, but painful nonetheless, are price hikes posted for insurance, magazines, newspapers, phone and cable service, and those from the airlines, utilities and local governments.

The methods that are used vary widely. They range from slipping in or raising fees and surcharges on the one hand, to reducing services or package sizes on the other.

Even that venerable publication, the Economist magazine, is getting into the act.

This week’s issue tells business it has to get better at charging more, all the while planning to raise its own prices.

This plethora of price hikes began a few months ago. It does not yet show up in year-to-year comparisons, especially those that exclude food and energy.

But year-to-year comparisons can be misleading. When push comes to shove, what have you done to me lately usually takes precedence — in other words, month-to-month changes.

That said, you might be just a trifle curious about how the use of the core rate of inflation (leaving out food and energy) came into being.

Not to worry — I will recount its origins for your information and edification.