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> Inflation is a general price increase. That doesn't happen with disrupted supply lines Yes it does. If the supply lines impacted are critical (e.g. food or e
by sofixa 4y ago
> Inflation is a general price increase. That doesn't happen with disrupted supply lines
Yes it does. If the supply lines impacted are critical (e.g. food or energy) every other product and service's prices will also increase because they're based on it.
> The proof of this is prices under inflation ratchet upwards - they don't come back down after the crisis is over.
That is usually true, but usually there is a general price readjustment - inflation ends at a certain place, but deflation isn't welcome so it never gets to that, monetary value and prices just stay at the new, stabilised normal.