Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "This Was the Point of NO return (CPI Breakdown)" video.

  1. The definition of Inflation is the rate of price increases in a defined period, expressed as a percentage. Inflation is a complex phenomenon that can be caused by internal monetary policy, or external supply shocks, or both at the same time. Normally measured in the aggregate by policymakers, the individual experience of inflation will vary according to what goods and services one buys. However, certain goods and services are non-discretionary, and their price inflation is felt directly or indirectly by everyone. Disinflation is the inability of producers to increase prices because of a persistent decline in consumer demand. Why producers may want to increase prices is either fear or greed. The reason consumer demand can fall is fear. Deflation is the percentage rate of inflation falling to zero or becoming negative. Deflation only comes when consumers restrict themselves only to necessary non-discretionary spending, and expect prices to fall for discretionary products and services. This normally happens after a period of Disinflation. Accordingly, this reduces margins for producers, who then pursue cost-cutting to survive. As labour is the largest expense for producers, both Deflation and Disinflation increase unemployment.
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