7 Ways Inflation Will Hit Americans in 2012

by InvestorPlace Jan 31st 2012 2:05PM
Inflation in the United StatesBy Kyle Woodley, InvestorPlace Assistant Editor

While many pundits have toasted "easing" inflation in the U.S., American consumers must be left scratching their heads. Sure, U.S. inflation grew at "only" a 3% annual rate in December, down from 3.4% in November, but 3% inflation still doesn't mean our wallets got any heavier.

The truth is, while we did actually get a break at the pump (if $3.25 gas still can be considered a break), that only helped offset increasing prices for food and other goods. The core U.S. inflation rate was unchanged from November at an annual rate of 2.2% -- the highest margin since October 2008.

With the economy still trying to muster a recovery, and unemployment still around 8.5%, any price increases are painful. And just a month into 2012, a spate of headlines points to more hurt ahead. Here are seven ways inflation will be digging into your wallet this year:




Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.



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Mike

mike jones
GET RID OF THE DO NOTIHNG CONGRESS

Thursday at 9:58 AM Report abuse Permalink +1 rate up rate down Reply
1 replies to mike jones 's comment


Mike

Congress has long made itself above the laws they pass for us. There is no chance these leaches will ever be honest. Time to let the fed govt default and fade away. There are 50 states fully able to do the governing with out the blood suking political class at the fed. Got gold?

February 07 2012 at 12:30 PM Report abuse rate up rate down Reply
Mike

Worried that the Federal Reserve and the U.S. dollar ARE on the brink of collapse, more than a dozen states have proposed using their own alternative currencies of silver and gold. ---NEW YORK (CNNMoney) -- Lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.

"In the likely event of hyperinflation, depression, or the breakdown of the Federal Reserve, State's governmental finances and private economy will be thrown into chaos," said North Carolina Republican Representative Glen Bradley in a currency bill he introduced last year.

Unlike individual communities, which ARE allowed to create their own currency -- as long as it is easily distinguishable from U.S. dollars -- the Constitution bans states from printing their own paper money or issuing their own currency. But it ALLOWS the states to make "gold and silver Coin a Tender in Payment of Debts."

February 04 2012 at 2:49 PM Report abuse +1 rate up rate down Reply
matt

Ron Paul explains how governmental inflation statistics are inaccurate.

http://www.youtube.co/watch?v=Ji87ocoZYmg

February 02 2012 at 3:26 PM Report abuse +2 rate up rate down Reply
matt

Ron Paul has been talking about this for years:

http://www.youtube.com/watch?v=y2g9Fzl8_Ms

February 02 2012 at 3:20 PM Report abuse +2 rate up rate down Reply
ggliddygirl2005

Let me give you all another reason for the increases in food and other merchandise ... other than the EPA which is absolutely out of control ... the heavy legislation handed down on the trucking industry. The EOBRs, electronic logs, and the pending new hours of service will all have a great impact on our economy.

The electronic gadgets are being touted by the ATA and the FMCSA as "safety issues" when really they have nothing to do with safety but they will definitely cost carrier companies and independent operators more money which means higher freight costs which means you and I will be paying a few extra cents when we buy things.

The new hours of service that is slated to take affect early 2013 will be the worst. These new hours of service will do a great disservice to businesses and when they receive merchandise. Not to mention the fact that new hours of service (when a trucker can drive and how long his breaks need to be and WHERE he takes a break if you can believe that shizzle) are unnecessary and burdensome.

When you hear someone from the American Trucking Assoc (ATA "anti truckers assoc) or from the FMCSA (Federal Motor Carriers Safety Administration), you can bet they're full of BS.

Please do yourselves and our economy a favor and go to OOIDA's website (OOIDA.com) and read through that if you want to know the truth. Click on some of the links there as well such as Landline and especially the link to Call To Action over on the left side of the home page. This is where the public needs to get an education about the trucking industry and how it will impact the economy as well as our roadways. Also, as a driver, you might learn a thing or two about trucking that you didn't know but thought you had a clue about.

I highly recommend that owners, CEO's, VPs, etc of businesses that receive merchandise for resale become familar with the trucking industry as well as the trucking industry impacts all freight costs that you incur.

Take action people. You are welcome to contact the Capitol Hill switchboard on matters that you are concerned with. In the link for the "Call to action" you will see the legislation numbers to reference when you call.

Thanks for your time and hopefully the next article discussing price increases will tell you the WHOLE truth as to why we're paying more.

February 02 2012 at 1:35 PM Report abuse +2 rate up rate down Reply
savemycountry911

Vote for me 'cause I'm your friend.
I'll try that Sociall-ism again.
I'll spend until we're out of debt.
Then I'll spend some more, you bet.
I am just a spending fool.
Vote for me cause idiots rule...................you know who.

February 02 2012 at 1:03 PM Report abuse +3 rate up rate down Reply
resson73

Stop printing.

Ron Paul 2012.

February 02 2012 at 11:28 AM Report abuse +1 rate up rate down Reply
abcborderline1

And Obama wants Blacks to reelect him? Obama is a multi millionaire, half black; that has Never experienced the black life or culture, want tha highest group of unemployed to re elect him ? Why not ask them to cut off their right hand for you, so you do not have to give up your life style, Obama?

February 02 2012 at 11:07 AM Report abuse +3 rate up rate down Reply
mike jones

GET RID OF THE DO NOTIHNG CONGRESS

February 02 2012 at 9:58 AM Report abuse +1 rate up rate down Reply
1 reply to mike jones's comment
Mike

Congress has long made itself above the laws they pass for us. There is no chance these leaches will ever be honest. Time to let the fed govt default and fade away. There are 50 states fully able to do the governing with out the blood suking political class at the fed. Got gold?

February 07 2012 at 12:29 PM Report abuse rate up rate down Reply
mike jones

2003-------------------2008============1929 GREAT DEPRESSION

February 02 2012 at 9:57 AM Report abuse +1 rate up rate down Reply