We are confused: on one hand the Fed is injecting hundreds of billions of liquidity into the market, boosting the S&P to all time highs and making the rich richer (Piketty taking Excel lessons from Rogoff notwithstanding) while the economy remains stagnant because, according to the BLS, inflation is too low, and as everyone knows the biggest lament of the impoverished middle class is that “the value of my dollar isn’t being destroyed fast enough for me to feel confident about the future.” On the other hand, the very same Federal Reserve Bank (of Chicago), just announced that as a result of “prices continuing to increase between 3% and 33%” (!), beginning May 27 it is hiking the prices in its cafeteria. So, clearly prices are rising at a 33% clip due to, how does the IMF put it, lowflation, right? Oh, and harsh weather.
From the Chicago Fed, highlights ours
Subject: Reserve Center Cafe changes coming
Reserve CenterTM Tenants,
Due to rising product prices in the past several years, The Reserve Center will increase its prices in the cafeteria effective May 27.
Over the past five years, many of you may have experience product price increases in grocery stores. Prices continue to rise between 3% – 33%. For the past eight years, The Reserve Center has been absorbing these increases. The last overall price increase in The Reserve Center cafeteria took place in 2006, followed by a limited increase on sugar-based products in 2012.