Inflation has risen in three of the last four months and is slightly higher than it was a year ago. Yet you wouldn’t know it from listening to President Donald Trump or even some of the inflation fighters at the Federal Reserve who have dismissed or even downplayed inflation.
Inflation going down doesn’t mean prices go down.
Picture yourself trying to catch up with a car going thirty mph, it’s getting away, then they slow to twenty.
That’s a reduction is acceleration, just like a reduction in inflation means prices are still rising, but slower.
This is a post about me at the grocery store.
30-to-20 is negative acceleration (2nd derivative) causing a reduction in speed (first derivative) from 30 to 20.
Similarly, inflation is a rate (like a velocity). A constant 10% inflation means prices rise at the rate of 10% per year.
No that’s a reduction in velocity.
That’s correct! I was wrong, and I typed is instead of in. Thanks.