The pandemic caused the food industry to run into supply chain constraints that legitimately increased prices at a rate higher than standard inflation. Greed set in and they turned those high prices into margin once the supply chains stabilized.
But isn’t that just explaining the reason behind the inflation? Prices went up, at that time merely called a “spike”, due to supply chain constraints. Followed by not merely statically keeping those prices but increasing them further still, aka greedflation. But together they fulfill the standard definition:
In economics, inflation is a general increase in the prices of goods and services in an economy.
So I would not agree with the word “never”, and therefore am not sure what you are trying to say.
That’s true. It’s still inflation by definition. Typically when people refer to economic inflation, it’s the expected increase in the cost of goods and services year over year. The standard inflation rate in the US is typically between two and three percent. Referring to this as inflation can imply to some that it’s tied to the standard increase. I’ll edit to include the word standard for clarity.
The problem was never standard inflation.
The pandemic caused the food industry to run into supply chain constraints that legitimately increased prices at a rate higher than standard inflation. Greed set in and they turned those high prices into margin once the supply chains stabilized.
That is the most accurate and succinct explanation I think I’ve seen anyone offer.
But isn’t that just explaining the reason behind the inflation? Prices went up, at that time merely called a “spike”, due to supply chain constraints. Followed by not merely statically keeping those prices but increasing them further still, aka greedflation. But together they fulfill the standard definition:
So I would not agree with the word “never”, and therefore am not sure what you are trying to say.
That’s true. It’s still inflation by definition. Typically when people refer to economic inflation, it’s the expected increase in the cost of goods and services year over year. The standard inflation rate in the US is typically between two and three percent. Referring to this as inflation can imply to some that it’s tied to the standard increase. I’ll edit to include the word standard for clarity.