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Inflation is Good (so they say)

We paid more for food and gas last month, but price rises in everything else were tame.

Gas up 2.9%. Food up .4%. But we can stay warm – clothing prices fell.

A small amount of inflation is good for the economy. It encourages businesses and consumers to spend and invest money sooner rather than later, before inflation erodes its value.

Of course unemployment has been in the neighborhood of 9% for a couple of years, which cuts down on discretionary spending.

Good news for seniors, though. Social Security benefits will finally get the first cost of living increase since 2009.

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