The title of this post is a quote from Richard Moody, an economist at Mission Residential.

His comment was referenced in today's "Consumer Prices, Driven by Fuel, Surge 1.1% in June" by Michael M. Grynbaum with The New York Times.

In essence, what cost $1.00 in May, ended up costing you $1.01 in June.  With such a small number, it does not seem like a lot.  However, say that you spend an average of $1,000 per month on food and incidentals.  If you do, that means that on average, what you spent in May, would have cost you $10 more in June.  Add that to the already stretched budgets of many Americans, and it is horrible news.  For someone making $14 or $15/hr., they had to squeeze out an extra hour of work in June to cover that difference.

Inflation is a dirty word that has been circulating for awhile amongst economists and politicians.  In fact, that single word is what caused the "are we in a recession or not?" debate that went on for quite awhile.

The 1.1% jump was the largest single month jump in 17 years.  In the past 12 months, the consumer price index has risen 5%, the largest annual jump since May, 1991.

There is no denying it now.  We are in a recession.

Is this news to anyone?  It's not to me!

I am, however, worried about inflation spiraling out of control after the fed tried to control it for so long.