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February 27, 2008

Inflation in 2007

The government has released the inflation numbers for last year. How bad was it? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Not as bad, I think, as many people would think. We're looking here at consumer prices. These are the prices we see when we go shopping. Averaged over the entire year, 2007, and comparing average prices over the entire year 2007 to 2006, prices went up 2.8 percent. Although at the end of the year, the rate of increase did accelerate. Now, no big surprise, the biggest increases in prices were for energy, food and medical care. We saw slower increases in prices for housing, recreation and education. And in answer to the question, Did anything actually go down in price, did anything actually get cheaper in terms of dollars and cents? The answer is actually, yes, clothing prices went down in 2007 in price, so they became much more of a bargain."

Posted by Dave at February 27, 2008 08:24 AM