Business Services Industry

Inflation Spurt Only Temporary.

Kiplinger Business Forecasts, April, 2002

Byline:Jerome Idaszak

A drive past any local gas station is all it takes to know that gasoline prices are up sharply this year. And it's not just fuel prices that are climbing. Companies are seeing a run-up in what they're paying for other commodities, such as steel and aluminum. Add it up and it looks as though galloping inflation is just around the corner. Don't worry. It's not. Average prices for consumers and businesses at year end will be just a bit higher than last December.

Energy price increases, combined with a relentless rise in the cost of medical care, will push the Consumer Price Index (CPI) up about 2% from December 2001 to December 2002, modestly higher than the CPI rose over the course of last year. But climbing prices for crude oil and...

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