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When you look at the various lens of CPI over time for this chart [0] it's not completely obvious to me that we're in a long term downward trend for inflation.
by time_to_smile 4y ago
When you look at the various lens of CPI over time for this chart [0] it's not completely obvious to me that we're in a long term downward trend for inflation.
We've definitely seen some important dips in inflation the last two months, and I think the fed is correct in not being too aggressive.
At the same time it's really hard to predict the next point in any of those lines. Additionally all of those "lower" inflation values are still above anything (outside of energy) we've seen in 20 years. Not to mention that inflation this November, while lower than this October, is still higher than last November.
0. https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm https://www.bls.gov/charts/consumer-price-index/consumer-pri...
- tiahura 4y agoWhat do you mean by long term?1 year or 10? If you watch CNBC most CEOs are saying that the price pressures have been abating over the last quarter or so. The take away is that we’ve peaked. Getting down to 2% is going to take time and pain.
- no_wizard 4y agoAre these cash rich businesses that the CEOs are head of that will benefit from the inflation curbing measures though? Lots of cash on hand while the value of the currency goes up means you can buy overseas material far cheaper than before. I don't think its going to be "even" on price pressure though. Businesses that routinely borrow money - which are alot actually, and not just in speculative ways - are of course going to be hurt. The most obvious is real estate / mortgage / construction industries . However the restaurant, automotive, and light manufacturing[0] industries (to name a few) are also going to be negatively impacted. [0]: https://en.wikipedia.org/wiki/Light_industry https://en.wikipedia.org/wiki/Light_industry