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A comment on U.S. annual inflation rate drops to 8.5%. Parent comment

Re:U.S. annual inflation rate drops to 8.5% by jonnycomputer on Wednesday August 10, 2022 @10:27AM (#32412553)
Of course it goes down. Take a look at this chart, expand to 10y or max; inflation was about -0.75% in early 2020. In fact, it went into negative territory many times in the last decade. Prices go down during recessions, particularly.

https://tradingeconomics.com/united-states/inflation-rate-mo...

OTOH, the Fed has goal of maintaining a 2% inflation target; so in the long run you can expect it to go up. For many many years before the pandemic, it failed to achieve that goal. Inflation was too low; which means job growth, wage growth, and gdp was below potential.

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Re:U.S. annual inflation rate drops to 8.5% by RC_ITR on Wednesday August 10, 2022 @12:38PM (#32414813)
Prices are an index and very rarely is the index not at an ath. Even in The periods you mentioned, the index was only off ath for a month or 3 and that’s mostly noise from Energy prices, so no it never reached a new equilibrium below where it was (that would be disastrous)

https://fred.stlouisfed.org/graph/fredgraph.png?g=SF8B

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Re:U.S. annual inflation rate drops to 8.5% by honkkong420 on Wednesday August 10, 2022 @10:58AM (#32413103)
But our unemployment rates were so low in 2019, how could they have been lower with higher inflation?
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Re:U.S. annual inflation rate drops to 8.5% by celtain on Wednesday August 10, 2022 @11:45AM (#32413947)
We have seen unemployment fall slightly below 2019 levels, but the more significant result of greater demand stimulation would have been reaching those levels of unemployment much faster, rather than taking a decade to recover from the great recession.
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Re:U.S. annual inflation rate drops to 8.5% by honkkong420 on Wednesday August 10, 2022 @01:33PM (#32415669)
That seems to be entirely explained by labor force participation. Note the skyrocketing amounts of people with more than one job
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Re:U.S. annual inflation rate drops to 8.5% by jonnycomputer on Wednesday August 10, 2022 @11:50AM (#32414025)
high employment and higher inflation can go hand in hand, actually, just high unemployment and deflation can (in a recession).
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Re:U.S. annual inflation rate drops to 8.5% by honkkong420 on Wednesday August 10, 2022 @01:34PM (#32415683)
Yeah that’s my point, inflation rates don’t really influence unemployment rates except at the margin
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