Inflation falls for eighth consecutive month

[ExpressLane]

Imagine if inflation fell from 1.4% for eight consecutive months. Eggs would be 99 cents

[Nomad]

there are perhaps some folks here stupid enough to believe that I am anything more than a babbling joke....me, for one........

Well, you do make a joke out of yourself everytime you post your ignorant drivel, so I guess it stands to reason that you'd assume you're something more than that.

But the rest of us know you're not.

[Walt]

Imagine if inflation fell from 1.4% for eight consecutive months. Eggs would be 99 cents

If eggs cost $1.11, and fell in price by 1.4% for eight consecutive months, then they would be at $0.99... But that would require a monthly fall of 1.4%, not an annualized fall of 1.4%. If that were caused by inflation/deflation, that would be annualized deflation of 16%, and would tear apart the economy very quickly.

If you used annualized deflation of 1.4% for eight months, your starting point would need to be $1.00 to get to an end point of $0.99.

Anyway, it has been 20+ years since eggs cost $0.99, I doubt we will ever return there.

[PostmodernProphet]

So 6% inflation is the end of inflation when a Republican is President, but severe inflation when a Democrat is President? Good to know.

like I said, this problem exists because you are too stupid to read a simple graph......

[Guille]

"Too much money chasing too few goods" is a good definition of inflation, which does sound like standard supply and demand issues, but with an interesting twist. The goods are usually consumed, but the money is not usually consumed. Money can be almost infinitely reused.

So the amount of money being spent in primarily a velocity issue. If one dollar is spent, and respent every week, it is $52 a year to the economy. If one dollar is buried in the backyard, it is $0 a year to the economy.

That means that inflation, and deflation, are primarily velocity issues, with some money supply, and goods, and services supply issues thrown in.

You are right except for two things, that dollar isn't going to recirculate indefinitely because it's being taxed every cycle.

As for supply that's not a velocity issue IF the supply itself is hamstrung. Biden is hamstringing supply...and logistics, so velocity doesn't matter because the supply needed for velocity to matter isn't there in the first place. I give you props though for even understanding velocity (cash circulation)...most people don't get that.

[Stringfellow Hawk]

How did Carter start double digit inflation in 1974, when he was not President until 1977? How would the then Governor of Georgia cause double digit inflation?

https://www.usinflationcalculator.co...flation-rates/

String seriously adds nothing to the debate. He makes up random lies, which are debunked, but cannot add anything to a serious debate.

there was not double digit interest and inflation in 74 jackass, go back to your favorite hobbies

[ExpressLane]

If eggs cost $1.11, and fell in price by 1.4% for eight consecutive months, then they would be at $0.99... But that would require a monthly fall of 1.4%, not an annualized fall of 1.4%. If that were caused by inflation/deflation, that would be annualized deflation of 16%, and would tear apart the economy very quickly.

If you used annualized deflation of 1.4% for eight months, your starting point would need to be $1.00 to get to an end point of $0.99.

Anyway, it has been 20+ years since eggs cost $0.99, I doubt we will ever return there.

Dumbass the point was eggs actually sold (I bought them from Krogers) for as little as 99 cents when inflation WAS 1.4% when Trump left office. If inflation fell even .1% a month for 8 months it would be 0.6% and eggs would still be selling around 99 cents.

I was helping out a family member that was on hard times and I bought them 99 cent a dozen eggs several different times. My wife however prefers Eggland brand because of cholesterol.

[Lionfish]

[Walt]

You are right except for two things, that dollar isn't going to recirculate indefinitely because it's being taxed every cycle.

As long as the taxes are spent, then tax money also recirculates.

[Walt]

there was not double digit interest and inflation in 74 jackass, go back to your favorite hobbies

Yes, there was double digit inflation in 1974. The average for the year was 11.0%, and the high was 12.3%. This is all well established history. Nixon's Fed Chair Burns, started the 1970's inflation, and Carter's Fed Chair Volckerv ended it.

https://www.usinflationcalculator.co...flation-rates/