3 ms·
Sometimes I wonder if the word inflation has two meanings. There's what we typically mean by the word -- a lingering phenomenon which feeds on itself. And the
by MilnerRoute 5y ago
Sometimes I wonder if the word inflation has two meanings. There's what we typically mean by the word -- a lingering phenomenon which feeds on itself. And then there's the short-term "situational" thing which lasts X number of months.
I think part of the problem is we're using the same word to describe two different things...
"Russell Price, chief economist at Ameriprise, expects inflation to peak at 7.1% in December and January, for example. After that, he expects the inflation rate to fall toward 4% by the summer and below 3% by the end of the year."
https://abcnews.go.com/US/wireStory/inflation-painfully-high-relief-coming-81709170 https://abcnews.go.com/US/wireStory/inflation-painfully-high...
- nopenopenopeno 5y agofalling inflation rate !== deflation
- llovan 5y agoThe cumulative inflation will not be undone even if the inflation rate falls next year.
- cma 5y agoThe rate can fall to negative, i.e. deflation can happen. It probably won't overtake inflation overall but it will be expected in areas like used cars. It isn't a one way ratchet.
- mathgladiator 5y agoWhen we talk about inflation peaking at 7.1%, is that over the prior December? So, y/y or is this m/m?
- ardacinar 5y agoIt is y/y (comparing Nov 2021 to Nov 2020). m/m 7% inflation is generally something more catastrophic.
- nikanj 5y agoAnd then there’s the one where every single asset class is too expensive for workers - but official inflation is sub-2-percent
- chii 5y agoAsset "inflation" is not considered inflation. Asset prices going out of reach is inequality.