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The way that official inflation numbers are calculated is a weighted average deemed useful for policymaking. However price increases are inflation, and inflati
by resters 3y ago
The way that official inflation numbers are calculated is a weighted average deemed useful for policymaking.
However price increases are inflation, and inflation in one area of the economy can occur simultaneously to deflation in another area. The net result will be the official inflation rate.
In the US, the Fed and the Treasury both do things that can impact inflation/deflation in broad AND targeted ways. However these policy instruments sometimes have effects that were not strictly intended, and sometimes non-policy-related economic factors create inflation/deflation.