Prices are rising all around us.  Even the Federal Reserve’s policy setting committee acknowledges that energy and other commodity prices have “pushed up inflation.” (See today’s Daily Insight from Brent Vondera).

Two weeks ago the Labor Department reported the Consumer Price Index (CPI) increased 2.7% from March 2010 to March 2011, led by increases in food and energy costs.  Yesterday, I stumbled across the graphic below from Flowing Data, which breaks out the prices changes over the past year.

It’s no real surprise that gas prices are up 27.5%, but I was a little surprised to see education costs rising more than food or medical care.  Many will note that the cost of apparel is lower in the last year.  Retailers have been enticing consumers with low prices, but prices will eventually begin to trend up as higher costs for commodities like cotton will eventually be passed on to the consumer.

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Quick Hits

* Mismanaged 401(k) Plans Need A Good Advisor’s Touch (Michael Lissner)

* Annuities Are Difficult to Justify (ft. Chris Lissner)

* CPI and PPI Biases

Peter Lazaroff, Investment Analyst

St. Louis, MO

www.acrinv.com