The U.S dollar has fallen over 5% over the last year, and the trade-weighted dollar is at its lowest since first recorded by the Federal Reserve began keeping record in 1973. As the dollar falls the prices of imported goods rises. Food and produce have risen in cost due to floods in China and Australia and the heat in Russia. Not to mention gas prices are at its highest, and this is due to the problems in Libya. Its crazy to think that petroleum has risen 20.6% over the last year. But not only imported goods are rising, even if its made in the united states if it calls for an imported component such as auto transmissions, or computer chips it will make the product more expensive. Another reason for the cause of high prices on imported goods is the fact the business spending is picking up raising the demand for imported products. This article caught my eye because it related to my (last week) question of the week response,
This is Terrible huh?. . .it would be awesum if we all these issues and problems can just go away with a snap of a finger.
Wallace, Charles. "U.S. Inflation Expands Beyond Food and Fuel - DailyFinance." Business News, Stock Quotes, Investment Advice - DailyFinance. Web. 31 Mar. 2011.
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