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The Conversation USA

Why the inflation rate doesn’t tell the whole story – all it takes is a spike in a category like used cars to cause consumer prices to soar

  • Written by Richard S. Warr, Professor of Finance, North Carolina State University
imageA big increase in use car prices drove the inflation rate higher in April.AP Photo/David Zalubowski

Markets, economists and policymakers have been fretting about inflation for months, worried that the trillions of dollars being spent in recent and future government stimulus programs could overheat the economy and send prices soaring.

On May 12,...

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