Isn't the index based on durable goods, food, energy...gas,electric, gasoline. If transportation costs go up all others will follow in an inflationary curve. Are you talking about stagflation like in the 70's?
Yes, CPI is based on those things, yes transportation can drive inflation, but retailers are slow to increase prices, as buyers will shift to other goods rather than pay higher prices, so those increases are buffered by price elasticity. Input changes have to be broad, deep, and sustained to move inflation.
Stagflation is curious. The Fed has been pumping unlimited dollars into the money supply for over a decade with very little impact on inflation. The economy was humming before the plandemic. It’s hard to say what’s going on under the current artificially imposed constraints. It’s certainly a shitshow.
"retailers are slow to increase prices, as buyers will shift to other goods rather than pay higher prices" - let's not forget "hidden inflation" i.e. where they try to keep things at the same price point or thereabouts by shrinking the quantity.
Isn't the index based on durable goods, food, energy...gas,electric, gasoline. If transportation costs go up all others will follow in an inflationary curve. Are you talking about stagflation like in the 70's?
Yes, CPI is based on those things, yes transportation can drive inflation, but retailers are slow to increase prices, as buyers will shift to other goods rather than pay higher prices, so those increases are buffered by price elasticity. Input changes have to be broad, deep, and sustained to move inflation.
Stagflation is curious. The Fed has been pumping unlimited dollars into the money supply for over a decade with very little impact on inflation. The economy was humming before the plandemic. It’s hard to say what’s going on under the current artificially imposed constraints. It’s certainly a shitshow.
"retailers are slow to increase prices, as buyers will shift to other goods rather than pay higher prices" - let's not forget "hidden inflation" i.e. where they try to keep things at the same price point or thereabouts by shrinking the quantity.
I remember when Ice cream came in half-gallon tubs, not 3-pint tubs.