Inflation Could Make a Comeback
After a long period of dormancy, inflation may be heating up again. At the November 2007 reading, the consumer price index posted the largest monthly gain in two years. In the 12 months ending in November, the inflation rate was 4.3%, well above the 20–year average of 3.0%.1,2 The Federal Reserve has helped keep inflation fairly low for the better part of the past two decades: The last time the annual inflation rate rose above 4% for a calendar year was in 1990 (6.1%).3 But current conditions have put the central bank in a bit of a pickle. A New…