Ok. Can someone explain to all of us how us sheeple/consumers can do anything about inflation? I mean…if we all stop driving cars for a day it would wreck big oil and all…but that’s never gonna happen. Even if it did the ripple effects would be weirder than the world we live in today. So…what’s the answer for inflation? Deflation? Lots of media coverage world wide but nobody is coming with the fix…
Traditionally the fix is to increase interest rates. Increasing rates makes money more expensive to buy (ie the cost of credit), that in turn means businesses and people reduce what they buy which reduces demand for goods and services.
Wage growth is also the highest so in real terms it actually grew Q1. Q2 will be more painful but should be in line with other g7 countries in real term loses, on the bright side at least core inflation fell.
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Ok. Can someone explain to all of us how us sheeple/consumers can do anything about inflation? I mean…if we all stop driving cars for a day it would wreck big oil and all…but that’s never gonna happen. Even if it did the ripple effects would be weirder than the world we live in today. So…what’s the answer for inflation? Deflation? Lots of media coverage world wide but nobody is coming with the fix…
Traditionally the fix is to increase interest rates. Increasing rates makes money more expensive to buy (ie the cost of credit), that in turn means businesses and people reduce what they buy which reduces demand for goods and services.
Wage growth is also the highest so in real terms it actually grew Q1. Q2 will be more painful but should be in line with other g7 countries in real term loses, on the bright side at least core inflation fell.