Tags: Analyst | Daryl | Jones | Inflation

Analyst Daryl Jones: Inflation Is Already Roaring Back

Wednesday, 07 Apr 2010 10:12 AM

By Dan Weil

While some economists continue to say that inflation isn’t a threat now, analyst Daryl Jones says that’s not true.

The government has incentive to underestimate inflation, because the consumer price index (CPI) is used to determine outlays for 48 million people on social security, 22 million on food stamps and 4 million civil service retirees, says Jones, managing director of risk management at research firm Hedgeye.

Policymakers tend to focus on “core” inflation, which excludes food and energy. But food and energy purchases make up 36 percent of the average consumer's budget, Jones points out in Fortune magazine.

“The Fed's inflation graph might look nice and smooth, but it's probably not the best indicator for how your wallet feels when paying bills or buying groceries.”

Many argue that inflation can’t accelerate in a sluggish economy.

But “primarily due to aggressively accommodative monetary policy in the United States and around the globe, we believe inflation is here, and poised to accelerate as all the slack in global economies begins to tighten,” Jones writes.

“Measures of inflation for major nations around the globe give support to our conclusions: Most of the G-20 nations are reporting higher than normal inflation rates.”

Not everyone agrees with Jones.

“Inflation is certainly no imminent threat to the U.S. economy,” David Resler, chief economist at Nomura Securities International, told Bloomberg.

“It ties in with the Fed’s statement. We see the Fed on hold through this year.”

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Dick's Sporting Goods Guns: What's Retail Chain's Policy on Selling Firearms?

Thursday, 08 Jan 2015 21:02 PM

Imagine walking into Dick’s Sporting Goods to make a gun purchase, something that’s entirely legal under the Second Amen . . .

RPT-Hedge Funds Raise Bullish Commodity Bets First Time in 5 Weeks

Sunday, 17 Mar 2013 17:13 PM

 . . .

Studies: Wind Potentially Could Power the World

Monday, 10 Sep 2012 15:51 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved