Re:U.S. inflation reached a new four-decade high of 8.6% in May
by fnordpiglet on Friday June 10, 2022 @06:09PM
(#31699924)
Global shipping has improved recently (from $10300 in September 2021 to $7600 in May 2022) and demand has cooled to the extent stores are starting to run clearance sales because of excess inventory. Gasoline prices will drop as suppliers ramp production to capture the revenue opportunities. Supply chain snarls will resolve with time. All of this will be deflationary.
We are recovering from a global natural disaster and things are still broken. I think it’s very difficult to apply steady state reasoning in these sorts of situations. But I don’t see any structural reason things won’t return to more or less 2019 status quo.
Concerns about inflation and deflation IMO are most important if they’re a structural feature. Periods of inflation and deflation as the system corrects itself are transitory and while impactful on our day to day lives don’t necessarily portend long term economic crisis.
We are recovering from a global natural disaster and things are still broken. I think it’s very difficult to apply steady state reasoning in these sorts of situations. But I don’t see any structural reason things won’t return to more or less 2019 status quo.
Concerns about inflation and deflation IMO are most important if they’re a structural feature. Periods of inflation and deflation as the system corrects itself are transitory and while impactful on our day to day lives don’t necessarily portend long term economic crisis.