Quote:
Originally Posted by Topspinmo
So, what saying once prices go up it’s new standard and inflation only affects that price point.
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Well you have to set date parameters like month over month or on an annual basis. You just can't take say gas at the pump today is $3 and tomorrow it jumps to $3.6 because of a pipeline attack and claim inflation's at 20%. The OP said "inflation decline", this DOES NOT mean prices are falling. It means THE RATE OF PRICE INCREASES are falling. Hypotethically speaking, gas was $3 on 1/1/2022. Inflation was 8% is 2022, so gas on 1/1/2023 would be $3.24. Inflation for 2023 is 4%, so INFLATION IS FALLING. However, gas on 1/1/2024 would be $3.37. $3.37 is a HIGHER PRICE than $3.24. So, prices can rise and we can still have inflation falling, or what is referred to as a disinflationary period.