Month-on-month, however, it was mainly used passenger cars that increased the demand inflation
this month, soaring 11.
The response to demand inflation
was four (futile) decades of managed care: government price-fixing and politically created HMO corporations profit-driven to ration supply.
Retirees who demand inflation
adjusted withdrawals in retirement must accept substantially reduced withdrawal rates from their initial portfolio.
Output growth seems likely to decelerate somewhat this year from the 4 1/2 per cent growth of 2002 as the fiscal impulse is withdrawn while effects of price liberalisation and structural reforms initially damp demand Inflation
had decelerated to 3 per cent due to transitory factors and is picking up again temporarily as a consequence of energy prices increasing toward cost-recovery levels.
Not only do both sources of inflation bear a positive and significant relationship to the earnings yield (a negative relationship to stock prices), both have similar sized effects, though the effect of demand inflation
is actually slightly larger in absolute value than that of energy-price-induced inflation.
However, demand inflation
appears to be more definitive with monetary growth than the Keynesian aggregate demand (real income).
Apart from food prices which continue accelerating inflation, demand inflation
and price of fuel were added in November.