The latest CPI report for the United States suggests that the inflation spike after 2020 was transitory in the rather weak sense that I understood the term “transitory.” I am curling in a bonspiel over the next few days, so I do have a long time to spend on this article, so I just want to outline my thinking on the topic of “transitory.”
CPI was calculated differently in the 70s. Today, it is highly managed. I think PPI may be a better inflation indicator.
In the 70s, the definition of inflation was an increase in credit and money supply. This caused inflation which was the effect of expanding credit and monetary expansion.
CPI was calculated differently in the 70s. Today, it is highly managed. I think PPI may be a better inflation indicator.
In the 70s, the definition of inflation was an increase in credit and money supply. This caused inflation which was the effect of expanding credit and monetary expansion.
It comes in fits and starts. It will be back.