By MICHAEL M. GRYNBAUM
Published: December 15, 2007
Economists and central bankers have worried for months that soaring food and energy costs could lead to higher inflation, but investors had shrugged off those concerns, preferring to focus on the slowdown in growth.”In the Fed’s mind, inflation never really left the picture,” the chief economist at PNC Financial, Stuart G. Hoffman, said. “I think in the market’s mind, it was off the radar screen.”
Higher prices, however, have begun to bubble up at the consumer and producer levels, government reports showed this week, complicating the policy calculus of the Federal Reserve as it tries to bolster the struggling economy.