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Inflation is an increase in the general price of goods and services in an economy. Ask yourself what is currently driving price increases? In my estimation it'
by ClarityJones 4y ago
Inflation is an increase in the general price of goods and services in an economy. Ask yourself what is currently driving price increases?
In my estimation it's the Fed's own rate hikes. The price of mortgages is going up. The price of car loans is high. The production of consumer goods relies on leverage and the increased finance expenses are pushing up the price of milk, gas, clothes, etc.
Of course the rate of inflation is slowing, the Fed is slowing their hikes from the previously imposed a .75 raise to the present .5 hike.
- georgeecollins 4y ago>> Ask yourself what is currently driving price increases? It's good to remind people that the reason for inflation up to this point is probably: - The US government spending a huge deficit during covid. - The war in Ukraine causing shortages / high prices for grain but most importantly oil and gas. - Covid lockdowns in China creating shortages. I understand that inflation sucks, particularly for people where gas or food is a big part of their spending. But I am also amazed at how our economy seems to be enduring a world wide pandemic and major war. There are many times in history when shocks like this caused much worse problems. As an American I am proud of how resilient our institutions are. But I could be counting my chickens before they hatch.
- JamesBarney 4y agoMortgage rates and interest rates on car loans aren't factored into the CPI.