Based on the latest report from the US Department of Labor, the CPI increased 0.4% in January and 1.6% for the past 12 months. They are reporting food inflation at 1.8% for the past 12 months.
The National Inflation Association (NIA), however estimates price inflation in the U.S. to be at least 5% and for food inflation to reach 10% in the first half of 2011.
This could mean the the dollar menu at McDonalds will be the $1.10 menu by June of this year! This also means that your money will buy less at the grocery store, at the gas pump and everywhere else that you spend it.
Whether you like Obama and think he is doing a good job, or not, it is time to really confront the effects that are being caused by the massive bailouts and federal deficits.
NIA estimates that we could easily see overall real U.S. price inflation rise into the double-digits by the second half of 2011. This will erode our standard of living and is, in effect, an indirect tax on our income.
The only solution is to generate more revenue to stay ahead of the inflation. I recommend 3 tips to combat the impending inflationary pressures:
- Pour the coals on your sales & marketing efforts. Drive your revenues up!
- Systematize your business processes to increase efficiencies and reduce expenses.
- Implement systems to monitor the results of your sales, marketing and operations, analyze your results compared with your targets and prior period performance, plan how you will improve the performance and TAKE ACTION to execute your plan.
If you are interested, I wrote a more detailed article that reviews the raw stats related to the fed bailout which you will find at the following link: QE2 – A prescription for hyperinflation?