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Re:UK: Food inflation rises to 18.2% as it hits highest rate... by anonymouskimmer on Friday March 24, 2023 @01:16PM (#35292287)
I actually do get it. An excess of money doesn't automatically make things cost more. An excess of demand with (more purchases), or for (higher prices), that money does. The demand excess has to start somewhere.
Re:UK: Food inflation rises to 18.2% as it hits highest rate... by elevenoh4 on Friday March 24, 2023 @01:22PM (#35292420)
>The demand excess has to start somewhere.

What do you think putting more money into circulation does to demand & nominal purchasing power?

An excess of money causes increased demand per unit dollar and subsequently, higher prices and inflation, through mechanisms including the Cantillon effect, changes in monetary velocity etc.

If i deposit more $ in your bank account, what happens to your nominal demand?

Re:UK: Food inflation rises to 18.2% as it hits highest rate... by anonymouskimmer on Friday March 24, 2023 @01:40PM (#35292732)
> What do you think putting more money into circulation does to demand & nominal purchasing power?

Ideally people would save for a rainy day. But people don't, and can't, always do this. Because for some this is the rainy day.

Non-ideally I would assume that most demand increases would go for non-groceries, and non-commodities in general, such as housing and travel, though I would expect some increase in durable goods commodity prices as people replace older goods with newer. Yet here we have grocery price increases. Are salaries in the grocery production chain going up 18%? I doubt it. The price increases are coming from elsewhere.

Re:UK: Food inflation rises to 18.2% as it hits highest rate... by brewdad on Friday March 24, 2023 @01:46PM (#35292856)
If it was as simple as you say, why didn't we see double-digit inflation in 2021 and 2022 when the money in questions was actually being handed out? There are multiple factors at play here with "money machine goes brrr" being only one of the causes of inflation.