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If inflation is so low, why does everything cost so much?

Article Excerpt
When the Federal Reserve last increased short-term interest rates on Aug. 9, a press release explaining the actions of the Federal Open Market Committee (FOMC) noted that the economy continues to expand and that the upside and downside risks to economic growth appear to be relatively balanced. Commenting on the level of inflation, the central bank stated: "Core inflation has been relatively low in recent months and longer-term inflation expectations remain well-contained, but pressures on inflation have stayed elevated.... With underlying inflation expected to be contained, the committee believes that policy accommodation can be removed at a pace that is likely to be measured."

What is the Fed talking about? Haven't they been to a gas pump lately? Haven't any of the committee members seen ads for $1 million, 3-bedroom fixer-upper capes in Boston, Fairfield County or Washington, D.C.? Aren't they bringing their kids back to college this semester and writing those...

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