I know this seems counter to what folks are feeling. It seems as prices are always going up. Note the remarks by Barry Ritholtz in the comment section. Inflation measures a broad basket of goods, not just a handful of things that on our lists of "Top Ten Irks." If the cost of something is up, consumers often substitute something else. If apples are pricey, they buy bananas. If oranges are expensive, they try the grape juice. If gasoline is up, they rideshare, use mass transit, telecommute, drive less, and hybrid purchases increase.

Interest rates are up because of the *fear* of inflation, rather than inflation itself. We're just not seeing the overall increase in the sum total of goods in that CPI market basket. IMHO, anyways.