⁍ July’s CPI report showed prices rising 0.6% m/m to bring year-over-year inflation rate to 1.0%.

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⁍ Many point to what they see as massive Federal Reserve money printing as an inflation tsunami-in-waiting.

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⁍ The likelihood of recent Fed actions causing prices to snowball seems quite low for now.

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– The Federal Reserve’s plan to buy $600 billion worth of Treasuries and mortgage-backed securities to keep interest rates low has investors worried about a double-dip recession and inflation on the way, the Wall Street Journal reports. The move, known as “quantitative easing,” or QE, is a way for the Fed to inject money into the economy through bond purchases, but it doesn’t actually “print money,” writes Felix Salmon at Reuters. Instead, the Fed makes electronic reserve credits that sit on deposit at the Fed, where they don’t go to banks but are used to buy long-term bonds. “We don’t think anyone’s investing strategy should depend on being able to do so,” Salmon writes. “If Fed actions eventually lead to higher inflation in the longer term, investors should have ample time to read the situation and make measured portfolio adjustments, if necessary.” And don’t panic just yet, he adds: “The likelihood of recent Fed actions causing prices to snowball seems quite low for now.”