Analysis finds Australia’s inflation being driven by company profits, not wages

Re:Analysis finds Australia’s inflation being driven by comp... by refurb on Sunday February 26, 2023 @02:23AM (#34943766)

All general means in that sentence is that the price increasing factors are more prevalent than the price decreasing ones.

It doesn't. Inflation is an erosion of value of the currency.

General means "across the board" because the currency is worth less.

Sure, if there is a glut of apples and the price drops you may not notice the inflation baked into the price, but it's there.

And if there is a shortage of oranges the price may jump higher than inflation, but that doesn't mean inflation is higher.

People seem to be confusing general prices changes due to other factors with inflation. It's not inflation unless the currency is worth less.

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Re:Analysis finds Australia’s inflation being driven by comp... by kasey_junk on Sunday February 26, 2023 @08:33AM (#34945399)

You’re arguing circularly. Currencies are worth less when things cost more. Things cost more when prices increase.

If a central committee increased the price on everything without changing the monetary supply that would still be inflation. Similarly if the invisible hand does it or if there is broad collusion amongst producers.

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Re:Analysis finds Australia’s inflation being driven by comp... by refurb on Sunday February 26, 2023 @07:55PM (#34951657)

Its not circular because its different drivers of price.

If gas prices rise the purchasing power of my dollar remains the same for most items.

If inflation goes up, my dollar buys less of everything.

[ Parent | on HN ]