Hidden Inflation: U.S. Consumers Adjust Spending Habits Amid Soaring Prices
March 25, 2011 at 06:00 AM EDT
U.S. consumers have watched food and fuel prices eat away at their household budgets, and now those price hikes are spreading to other products - with the worst yet to come. New York Federal Reserve Bank President William Dudley recently got a taste of public frustration with higher prices. He spoke to a crowd in Queens, New York on March 11 to tackle a mountain of food inflation questions. Dudley told the audience that while some prices are rising, other products are cheaper - like the Apple Inc.'s (Nasdaq: AAPL ) latest iPad. "Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," said Dudley. "You have to look at the prices of all things."