More bad news

This morning, we got a large dose of bad news on the economy. Unemployment claims were up substantially, inflation rose by more than expected and the trade deficit went back up as well. None of these things alone was a big deal. Weekly jobless claims fluctuate all the time. One month's inflation rate can easily change. The trade deficit can be looked at as proof that consumers are buying more, a good sign. Still, in the bigger picture this is not good. Obviously, we would all rather see fewer unemployment claims and some much needed job growth. Today's figures make clear that we not only did not have Recovery Summer but we are not in the middle of Recovery Autumn either. The inflation figures showed that the biggest increases were in food and energy. Folks on Social Security were just told that there will be no cost of living increase for next year since inflation was so low. Then a day or so later, the government releases news that food costs were rising at a higher than 5% annual rate. Since food and energy are two things that the elderly do use (along with medicines that are soaring in price) it seems that Washington is holding the line on Social Security while the costs of things the elderly actually use is going up rapidly.