Economic Myths: Food and Energy are Killing Us

Jim Lee’s great perspectives on our supposed economic woes are mythologized in APICS’ on-line newsletter (subscribe at www.apics.org). Myth number 2 of 3 is:

Myth #2: With soaring food and energy prices, the official numbers on inflation (around 4 percent) are grossly misleading.

He reveals that food and energy are 6% of typical household budgets so don’t get too bent out of shape. Rather, look at your housing expenses since they are 40 percent of budgets and have stayed flat. This inflation illusion is hyped by the media and ourselves. This isn’t saying that we shouldn’t be concerned- just that the sky is NOT falling.

What do you think? How are fuel prices affecting you? I drive a lot so energy is a lot more of my personal budget.

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