Raymond J. Keating, chief economist for the Small Business & Entrepreneurship Council (SBE Council), offered the following statement in reaction to the CPI inflation numbers released this morning by the U.S. Bureau of Labor Statistics:
“Despite the continuing efforts by Fed Chairman Ben Bernanke to reassure that everything is under control regarding inflation, the CPI inflation data for August, up 0.4%, and the past year, running at 3.8%, confirm that this is simply not the case.
“Since the Fed has been running the incredibly loose monetary policy for the past three years, no one should be surprised that inflation is running hot. Meanwhile, the Fed’s open monetary spigot has accomplished nothing in terms of getting the economy moving.
“These inflation numbers provide a disturbing reminder that, yes, inflation can accelerate in a down economy. It’s called stagflation.It might not be treasonous, as Texas Governor Rick Perry offhandedly said, but it sure is bad economics, with grim consequences for the nation.”