Tuesday, December 7, 2010

Russian Inflation HeadsTowards Double Digits

Russian inflation in November hit 8.1% for the year.

Nouriel Roubini reports:
Food prices reversed the recent deflationary trend; beyond food prices, which are a major driver of inflation expectations, loose fiscal policy and only partially sterilized intervention in the FX market suggest inflationary pressures will continue to build in H1 2011.
On a side note, it is interesting that Roubini, a buddy of Ben Bernanke's, writes that food prices are a major driver of inflation expectations.

Bernanke and Krugman both use Nixon-inspired "core inflation", which excludes food prices, to claim there is no inflation in the economy.

No comments:

Post a Comment