Wednesday, May 28, 2008

There is no inflation, nor will there be any in the immediate future:

Or so the Federal Reserve asserts. And here's the proof:
Wed May 28, 11:00 AM ET

Dow Chemical Co. will raise its prices by up to 20 percent almost immediately to offset the soaring cost of energy, and the CEO of the chemical giant lashed out at Washington on Wednesday for failing to develop a sound energy policy.

Dow supplies a broad swath of industries, from agriculture to health care, and any sizable price jump would likely affect almost all of them.

The price increases will take effect Sunday and will be based on a product's exposure to rising costs. Dow said it spent $8 billion on energy and hydrocarbon-based feedstock, or raw materials, in 2002 and that could climb fourfold to $32 billion this year.
Look for chemicals to be excluded from "core" inflation formulas. It worked for energy and food, didn't it?


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