Author Topic: Here’s Why Price Inflation Could Remain Elevated for Several Years  (Read 89 times)

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Offline Ptarmigan

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Here’s Why Price Inflation Could Remain Elevated for Several Years
https://fee.org/articles/here-s-why-price-inflation-could-remain-elevated-for-several-years/

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Over the last year, consumer prices have increased roughly 5 percent, the biggest increase in 13 years. Driven in large part by the federal government’s reckless money-printing, such steep price increases will cut Americans’ paychecks and erode their savings. Now, in a concerning twist, we just got reason to believe that elevated levels of price inflation could persist over the next several years.

A new survey by the Federal Reserve Bank of New York measured inflation expectations—what consumers expect will happen—and found that many are anticipating more price increases to come. The latest figures reveal consumers expect prices to rise 4 percent over the next year, with median expectations coming in at 3.6 percent for the next several years.

Of course, these are just peoples’ expectations about the future. They are by no means guaranteed to come to fruition. However, price inflation often causes a harmful spiral and self-fulfilling prophecy that ultimately leads to more price inflation.

Inflation could be hear for several years.
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Offline thundley4

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Re: Here’s Why Price Inflation Could Remain Elevated for Several Years
« Reply #1 on: June 22, 2021, 06:07:53 AM »
Let's ignore the effect that rising gas prices had on the cost of everything. Let's ignore the fact that gas prices started rising when Xiden cancelled the Keystone pipeline.