To: RetiredNow who wrote (785137 ) 5/16/2014 11:58:32 AM From: RetiredNow Respond to of 1573682 It’s getting to the point where I can’t read the NYT anymore. They have very uninformed people writing articles nowadays. To whit, see the below. I can think of at least two other reasons, besides economic recovery and demand recovery, why prices might be rising: supply is shrinking as companies buy back shares and give dividends in lieu of capital investment, since they don’t see sufficient demand and ROI in more investment massive increase in money supply from QE is driving hot money flows around the economy driving up prices, even as wages stagnate. This guy writing this article concludes that inflation is back, therefore, so must be demand and economic recovery. Well, inflation is back, the economy is muddling along with close to zero percent GDP growth last quarter, wages are stagnant to declining impacting consumer spending, and only reason the unemployment rate goes down at all is because labor force participation is declining. That is NOT a picture of economic recovery and health. ----------------------nytimes.com The Federal Reserve finally seems to be getting what it wants. Two indicators of economic health that the Fed and its chairwoman, Janet L. Yellen, have identified as keys to a stronger recovery — modestly higher inflation and a more robust job market — finally seem to be moving in the right direction, according to new data released by the government on Thursday. In particular, economists said, a rise in the Consumer Price Index in April, along with several other reports this week, suggest a broader economic firming is underway after a weak, weather-plagued start to 2014. Besides the increase in consumer prices reported on Thursday, data Wednesday on producer prices showed a rise of 0.6 percent last month, the largest increase since September 2012 and an indication that demand for a number of basic goods is growing faster than economists expected.