Inflation Expected

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Marina
Posts: 2514
Joined: 6 years ago

Inflation Expected

#1 Post by Marina » 1 month ago

Will it remain high or no?
The New York Fed - expectation for the rate of inflation over the next year increased to 5.2% . Therefore, expect high increases in price of food, rent etc.

Officials at the Federal Reserve, the central bank tasked with ensuring price stability, have pointed to virus-induced supply chain disruptions as inflationary pressures that can’t last forever.

https://www.msn.com/en-us/money/markets ... ar-AAOoByL
Marina

Bobcat
Posts: 3846
Joined: 7 years ago

Re: Inflation Expected

#2 Post by Bobcat » 1 month ago

This thread is related to this post.

All the pandemic stimulus money, in theory, has to result in inflation.

Inflation usually results from a combination of short supply and large demand. During the pandemic, business (and therefore production) slowed. Normally, this would also result in less money in people's pockets as they get laid off or lose their jobs, and therefore, less ability to buy the fewer products available. Both conditions would cancel each other out.

But the stimulus money (in the US) gives more buying power to people, while the available products remain relatively lower. This combination should, in theory, result in the rise of prices as demand for products outstrips the supply.

It remains to be seen if this pandemic becomes the "black swan" that has been feared for some time. (See this post.)


Bobcat

Marina
Posts: 2514
Joined: 6 years ago

Re: Inflation Expected

#3 Post by Marina » 1 month ago

We gotta problem - the wind has stopped blowing.

https://www.wsj.com/articles/energy-pri ... 1631528258

If its worldwide though - it could be good.

(Revelation 7:1) . . .After this I saw four angels standing upon the four corners of the earth, holding tight the four winds of the earth, that no wind might blow upon the earth or upon the sea or upon any tree. . .
Marina

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