No Inflation Here…

A month ago I couldn’t get a rental car in Los Angeles from Hertz, Avis, Enterprise, Dollar or Thrifty, not to mention Budget. So I got one from Ace Car Rental, which operates out of a small office in a dark alley near one of the LAX runways, uses no computers—just old fashioned pens and paper forms—and is, I am guessing, recommended by four out of five leading drug dealers.

Last week New York City was packed—stores, restaurants, sidewalks. Even the guy protesting some sort of stained-glass window situation in front of St. Patrick’s Cathedral (I am not making that up) had to fight to keep his spot on the steps.

This week in Atlanta the hotel was full and I almost lost my room thanks to a mix-up at the front desk, but the guy managed to scrape up something at the last minute.

So when this morning I hear a Deutsche Bank analyst is reporting that “RevPAR”—revenue per available room, the standard measure of strength in hotel room rates—was up 10% in the first quarter and could be stronger the rest of 2006 given booming business travel and strong vacation bookings, it comes as no surprise to me.

But somebody ought to tell the Fed that whatever inflation statistic they’re using has gone, as they used to say about well-intentioned experiments in 1950’s sci-fi flicks, horribly, horribly wrong.

Jeff Matthews I Am Not Making This Up

© 2005 Jeff Matthews

The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews’ recommendations.