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"It's a kind of double whammy - inflation on the one side, and artificially suppressed interest rates on the other," he says.
The grade inflation on college campuses plays into that.
Inflation on top of rising unemployment is another thing entirely.
"Economic growth surprised on the downside and inflation on the upside.
Subsidized food and medical care also soften the impact of inflation on the poor.
Thus, middle income earners are currently experiencing inflation on their total basket of goods.
The yields after inflation on five-year TIPS, meanwhile, are currently negative.
Mr. Trichet has blamed the spike in inflation on higher energy prices.
Ben Bernanke, the Fed's chairman, warned about "unwelcome" inflation on June 5th.
A government report showed inflation on the rise and consumers cutting back.
True, that's more than twice the current level of inflation on the CPI measure.
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