Worker pay isn’t keeping up with inflation

Re:Worker pay isn’t keeping up with inflation by MilnerRoute on Friday December 17, 2021 @12:34AM (#29588242)

Sometimes I wonder if the word inflation has two meanings. There's what we typically mean by the word -- a lingering phenomenon which feeds on itself. And then there's the short-term "situational" thing which lasts X number of months.

I think part of the problem is we're using the same word to describe two different things...

"Russell Price, chief economist at Ameriprise, expects inflation to peak at 7.1% in December and January, for example. After that, he expects the inflation rate to fall toward 4% by the summer and below 3% by the end of the year."

https://abcnews.go.com/US/wireStory/inflation-painfully-high...

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Re:Worker pay isn’t keeping up with inflation by llovan on Friday December 17, 2021 @12:50AM (#29588355)

The cumulative inflation will not be undone even if the inflation rate falls next year.

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Re:Worker pay isn’t keeping up with inflation by cma on Friday December 17, 2021 @12:59AM (#29588422)

The rate can fall to negative, i.e. deflation can happen. It probably won't overtake inflation overall but it will be expected in areas like used cars. It isn't a one way ratchet.

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Re:Worker pay isn’t keeping up with inflation by nikanj on Friday December 17, 2021 @12:51AM (#29588365)

And then there’s the one where every single asset class is too expensive for workers - but official inflation is sub-2-percent

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Re:Worker pay isn’t keeping up with inflation by chii on Friday December 17, 2021 @04:11AM (#29589728)

Asset "inflation" is not considered inflation. Asset prices going out of reach is inequality.

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Re:Worker pay isn’t keeping up with inflation by nopenopenopeno on Friday December 17, 2021 @12:48AM (#29588326)

falling inflation rate !== deflation

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Re:Worker pay isn’t keeping up with inflation by mathgladiator on Friday December 17, 2021 @12:51AM (#29588358)

When we talk about inflation peaking at 7.1%, is that over the prior December? So, y/y or is this m/m?

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Re:Worker pay isn’t keeping up with inflation by ardacinar on Friday December 17, 2021 @02:25AM (#29588997)

It is y/y (comparing Nov 2021 to Nov 2020). m/m 7% inflation is generally something more catastrophic.

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