Inflation Appears to Be Over

Re:Inflation Appears to Be Over by glitchc on Wednesday November 15, 2023 @02:56PM (#38281557)

Inflation is quite a misunderstood little number. It is actually a measure of the rate of increase in prices i.e. it's a velocity, not a position.

When inflation is low, prices grow slowly over time. When it is high, they grow quickly over time. High inflation over a sustained period of time leads to a meteoric increase in prices.

For prices to decrease, the inflation rate would have to be negative. For them to decrease to pre-pandemic levels, inflation would have to be negative for a sustained period of time.

[ Parent | on HN ]

Re:Inflation Appears to Be Over by SAI_Peregrinus on Thursday November 16, 2023 @03:03PM (#38294698)

When inflation is positive but low, prices grow exponentially, but the time it takes to hit the "knee" of the exponential curve is long.

When inflation is negative, it's deflation, and prices drop exponentially.

[ Parent | on HN ]