You don't get out much ,do you?
Have you not noticed rising energy and fuel prices?
Gas is up 20 cents per gallon since mid November.
Milk is up to $3.50 from the high 2's.
Inflation is occurring due to the dollar's weakness in the currency markets.
This weakness is caused by the Obama admin's deficit spending and the decision by the federal reserve to pump money into the stock markets. In order to do this, the federal reserve must print more currency. This crates more supply of dollars and thus the dollar becomes worth less.
The price of oil on the commodities exchanges is based on US Dollars.
Over the last 6-8 weeks the price of a barrel of oil has increased from about $72 per barrel to over $87 per barrel. The wholesale price of unleaded regular has jumped from $2.05 per gallon to nearly $2.40 per gallon. THAT is inflation. Why is this described as inflation? Simple. This is a low point of fuel consumption throughout the year. In fact demand is down significantly from last year, yet the price of gas is nearly 80 cents higher than one year ago. Despite lower demand, prices continue to rise. This is due to inflation.
Oh, and when the price of fuel increases so do the costs of manufacturing and shipping. Hence, consumer prices for most goods increase as well. Inflation.
FYI as I write this the NY Mercantile Exchange (NYMEX) price for a barrel of oil is $88.94....NYMEX gasoline is at $2.33 per gallon.