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There is a distinction between "price inflation" and "inflation". Even the Federal Reserve allows for this distinction. >A historical look at the origin and us
by aww_dang 5y ago
There is a distinction between "price inflation" and "inflation". Even the Federal Reserve allows for this distinction.
>A historical look at the origin and uses of the word inflation, arguing that although the term has become nearly synonymous with "price increase," its original meaning—a rise in the general price level caused by an imbalance between the quantity of money and trade needs—is the definition driving many of those who advocate an anti-inflation policy for the Federal Reserve.
https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/1997-economic-commentaries/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation.aspx#:~:text=A%20historical%20look%20at%20the,driving%20many%20of%20those%20who https://www.clevelandfed.org/en/newsroom-and-events/publicat...
That said, even if the actual supply of money (literally inflation) is not increased, if there is more money available for spending by lower income individuals, it stands to reason that price inflation would follow in the sectors of the economy which they participate.