Inflation is heating up. The news last week was that the official rate, which had been rising all year, surged to 3.6% in May. That's three times the level it was just last summer and the highest rate in nearly three years.
Markets were alarmed, and stocks sold off.
But is this news as bad as it sounds? Here's a heretical thought. Maybe we actually need a serious dose of inflation to get this economy moving again -- something like a sustained 5% annual rise in the Consumer Price Index (CPI).
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