Inflation or Deflation?

[Pkg Man]

One other note on the inflation issue: rising commodity prices and weak consumer purchasing power force companies to reduce product sizes to pass costs along and maintain profitability.  If prices don't rise at the store (indicating tame CPI inputs), but you get less product for your money, isn't that inflation?

http://www.nasdaq.com/aspx/stock-market ... costs-rise

The folks at the Bureau of Labor Statistics take this into account. So changes in the size of the product (smaller chip bags, for example) would translate into higher measured inflation even if the price remained constant.

[Pkg Man]

I read an interesting article in the WSJ today (free edition) by Allan Meltzer.  He makes a case to fear inflation, and one which I happen to side with.  But who knows how it will ultimately pan out.

http://online.wsj.com/article/SB1000142 ... lenews_wsj

[AdamA]

I saw the word "inflation" written on one of Glenn Beck's chalkboards last night.  I am now officially a deflationist.

[murphy_p_t]

I saw the word "inflation" written on one of Glenn Beck's chalkboards last night.  I am now officially a deflationist.

best laugh i've had all day