According to the media, this morning’s economic news tells us in no uncertain terms that there is no inflation. Check this out:br /br /Main headline from a major financial site – span style=”font-weight: bold;”Inflation stays caged in April/spanbr /br /And now these sub-headlines:br /ullispan style=”font-weight: bold;”Consumer prices overall rise just 0.2% — half that when food and energy are excluded./span/lilispan style=”font-weight: bold;”Food prices see biggest increase in 18 years./span/lilispan style=”font-weight: bold;”Inflation likely to rise in 2009, mutual fund managers believe/span/li/ulAnyone confused? Better yet, anyone holding back on purchases of some items to pay for the increases in bagels, pizza, beer, rice, milk, gasoline and heating oil. Yes, these are the “volatile” food and energy components of inflation but they are now spilling over into the rest of life. People are not buying other stuff so price pressures go down yet who has more money left at the end of the month now than they did last year? Not /br /Inflation is here. The charts have been talking about it for a year and a half and all the government and economic wonks out there probably don’t live in blue collar neighborhoods.