The U.S. economy defied widespread recession forecasts and claims that only a significant rise in unemployment could curb inflation.
But last week, the Bureau of Labor Statistics reported that both the Consumer Price Index and the Producer Price Index (PPI) rose 0.3% in January, more than what analysts expected. David Frum: Everything we know indicates that those disappointing numbers were mostly a statistical blip and do not represent a significant worsening of inflationary trends. The American economy continues to look like an amazing story, Frum says.