Nah...nobody buys food to eat or uses energy (gasoline, heating oil etc. etc.) Inflation according to the Gov't voodoo CPI rate is "manageable." The Ministry of Plenty says so....


The Federal Reserve should forcefully tackle the risk of inflation and the weakness of the dollar now to avoid the stagflation experienced in the late 1970s, according to Paul Volcker, the former chairman of the US central bank.

Testifying before Congress on Wednesday, Mr Volcker warned of a “resemblance” between the inflation outlook today and in the early 1970s, when the economy featured an overall tendency towards rising prices, as well as big increases in energy and agricultural prices.

Mr Volcker said the response from the Fed at the time had not been “forceful enough” in terms of tightening monetary policy.
He added: “If we lose confidence in the ability and the willingness of the Fed to deal with inflationary pressures and sustain confidence in the dollar, we’ll be in trouble.”

http://www.ft.com/cms/s/0/a392d5ce-2...077b07658.html

Housing values shot up around that time, so this is great news; at least with inflation the runup in real estate prices of the past few years will be affordable for citizens.

Personally I would love to see interest rates of the Volcker years....a 16% CD would be great! Maybe not for some....but for those with Cash it would be a boon...