Income drops as consumer prices increase

Income drops as consumer prices increase - this from America Blog, please follow link to original

Both are going in the wrong direction. With the dollar taking a beating plus the unstable situation in the oil producing countries, oil is likely to be at an uncomfortably high rate for a while. (Remember all of the Washington promises about planning for the future the last time oil prices spiked? Ha!) And then there is the problem with food prices going up. Between the high oil prices plus traders making their money from the bellies of the world, this too is a problem that isn't improving and won't likely improve for a while.

There's also nothing that suggests any big changes with the economy any time soon so wages are likely to stagnate, at best. All of this means more financial trouble for the coming years. But at least the richest of the rich are paying less in taxes, because that's what it's all supposed to be about, right? Any Democrat that allows the GOP to keep slamming the middle class really needs to change parties. If they can't see this problem, they ought to pack it in and quit as well. The country can't afford such stupidity any longer.

Those trends came as real income dropped 0.5 percent for the month.

The Labor Department said its Consumer Price Index increased 0.5 percent after rising by the same margin in February. That was in line with economists expectations.

Core CPI is vindication for officials at the Federal Reserve who have viewed the recent energy price spike as having a temporary effect on inflation.

Food and gasoline rose 0.8 percent, the largest gain since July 2008, after increasing 0.6 percent in February