Labor costs are rising. As the unemployment rate is now below 5%, companies are going to compete to find workers and they way they compete is by offering better compensation packages. People are aware already of the rising cost of energy and all other items in general so they are going to work for the best paying offer.

Business will have to pass on these costs to the ultimate consumer: the public. So, even if the energy prices stop rising, the pressure towards rising prices will continue. In addition, the injection into the economy of dollars not backed by increased production will devalue the currency and will fuel further inflation.

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This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.