The “I” word is back. Where you might ask? Have you booked a flight or hotel room recently? The price of gasoline has been consistently close to $4.00 a gallon. Commodities of all types from food to raw materials have seen upward price pressures. But is it a bad thing? I’m not referring to that persistent double digit variety that those of us of a certain age can still remember. Inflation has been essentially non-existent as an investment theme for several years. Central banks have been working hard the last few years to actually create inflation for fear that the alternative, deflation, would result in a serious contraction of economic activity. The economy stagnates or even contracts as everyone does less waiting for lower prices. Shoppers spend less, businesses invest and build less and government collects less taxes. Newsletter 6-30-2014
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