12 Mar '11, 11pm

'Inflation? Well... iPad 2 costs the same': NEW YORK - MEMO to central bankers: When you are visiting a working-...

NEW YORK - MEMO to central bankers: When you are visiting a working-class neighbourhood, it is best not to cite the price of the new iPad as an example of why inflation is not a problem. In Queens on Friday, New York Federal Reserve Bank president William Dudley made that mistake, and got an earful in return. After being bombarded with questions about food inflation, he attempted to reassure his audience by putting rising commodity prices in a broader economic context - but that only made matters worse. 'When was the last time, sir, that you went grocery shopping?' one audience member asked. Mr Dudley tried to explain how the Fed sees things: Food and energy prices may be rising, but other prices are declining. He tried to reach for a real world example. The only problem was he chose Apple's latest tablet computer that hit stores on Friday, which may be more popular at the...

Full article: http://www.straitstimes.com/BreakingNews/TechandScience/S...

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