11. Higher inflation would enable old capital to stay competitive, but profitable capacity would then exceed market demand. 12. When they acquiesced, the result was higher inflation. 13. Allowing higher inflation through low interest rates can only hold down unemployment in the short term, he said. 14. Although the gains in income and spending suggested the possibility of higher inflation, forecasters asserted that the longer-term trend was for an economic slowdown. 15. Alzola noted that incomes and prices in countries like Ireland and Portugal are simply catching up with their wealthy big neighbors, so higher inflation rates are almost inevitable. 16. An increase in either means companies are having trouble meeting demand -- and could raise prices, setting the stage for higher inflation. 17. Analysts noted that elements of the employment report raised red flags about the potential for higher inflation ahead. 18. Analysts said the robust report raised the specter of higher inflation and of a decision by the Federal Reserve to raise interest rates to counter it. 19. Analysts voice their concern during the day about the possibility of higher inflation and higher interest rates in a buoyant economy. 20. An overheating economy leads to higher inflation and would call for the raising of interest rates to cool it off. |