Inflation Peaking and Prices Peaking are not the same thing!
When did inflation peak?The answer is B. ![]()
The reason is that inflation is the derivative, or instantaneous slope, of the price curve depicted. It is not the actual level of the price at a given point in time.
The reason is that inflation is the derivative, or instantaneous slope, of the price curve depicted. It is not the actual level of the price at a given point in time.
Now let me superimpose inflation onto that first graph, using a different color.
It's a bit rough, but you see that inflation peaked even though prices did not. Indeed, prices only peak at point C, at which point we do not have a peak in inflation, but actually deflation! This means inflation turns negative, and prices start to decrease.
If someone claims inflation has peaked, they are saying we are at point B, NOT point C.
Thank you for your time.![]()
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Sianzsation : Still confuse but thanks for the insight
Musky : Thanks for sharing
Musky : If price has peaked then there is no need for 0.5% increase this and next month. Every country is protective of themselves politically. So export ban. World bank said cooperation between countries. Like Covid. They will protect themselves first than thinking for global economy.
SpyderCall : prices lag behind inflation because most companies must clear out their higher than usual inventory that was purchased on higher input costs due to inflation
SpyderCall : good post![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
mooster Han OP Musky : Happy Trading![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
mooster Han OP SpyderCall : thx![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
mooster Han OP Sianzsation : Inflation is the growth rate of prices. Prices don't need to go down for inflation to fall. Prices only need to grow at a slower pace.
mooster Han OP Musky : Well said.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
mooster Han OP SpyderCall :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
You make a good point.
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