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Can you explain why YoY matters most? It has always seemed like a very laggy indicator to me. Eg, if inflation is brought under control, the YoY numbers will
by drewg123 3y ago
Can you explain why YoY matters most?
It has always seemed like a very laggy indicator to me. Eg, if inflation is brought under control, the YoY numbers will make it look like there is still inflation on-going for the next 12 months. To me, that seems almost dangerous, as it will provoke inflation countermeasures from the government, and inflation reactions from business & labor (price/wage increases) that will in turn lead to even more inflation..
- MR4D 3y agoMoM numbers can be bumpy and bounce around a bit every month regardless. YoY numbers smooth out that bumpiness. It's very possible that next month we see numbers go up, which would make this report an outlier, and the YoY numbers more accurate. If you look at the Energy row, you can see this month over month variation is quite high.