Thursday, August 14, 2008

Consumer Price Increase Is Energy Surcharge

The rise in U.S. consumer prices being reported around the world is not unexpected. I find it interesting how most reports include statistics "stripped" of energy and food price increases. What they don't tell you is that nearly all of the increase is energy driven. Energy affects transportation prices for goods and services. It impacts input costs into goods and services. It affects direct operating costs of businesses. It is built into every item manufactured and every service offered.

My point is this: It isn't inflation that we are seeing, it is a fuel surcharge. If we want to see inflation controlled, we must cut our energy costs.

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