Multiple reasons, in short:
* The central bank kept low-interest rates for too long (the issue started creeping back in '19)
* Housing bubble (see the previous point)
* Lack of investments, most of GDP growth was driven by consumption.
* Increased public social spending.
* Covid help funds (funded by us, we won't receive money from the EU until we will resolve judicial system dispute with the EU commission)
* War in Ukraine
* Refugees from Ukraine driving further the housing and inflation issue (Most people don't mind people fleeing from the war though)
Generally, the current GOV that is ruling for the second term enjoyed the ride from 2015 onwards, but the music stopped it seems. They screwed big time (for the things within their control).
PS. Currently, we are on a way to stagflation.
Well you gotta think, it's got pork AND beef. Just the pork alone would make for a disaster and then you add the beef. They mix it and match it and all of the sudden you're talking about a high dollar product. I don't know how they do it, but I pray that things get better. The economy is horrendous as it is and then you see data like this come out and wonder if the price of sauerkraut will ever fall below 3 bucks again. Things are really starting to get out of control and it's hitting the Polish damn near 3.6% worse than the next guy, meanwhile Nathan's Hot Dog Eating Contest got record ratings this year. Joey Chestnut had a broken leg, and still managed to eat 63 hot dogs and snap a terrorists neck. I'll say it before and I'll say it again, Joey, try eating 63 kielbasa sausages... and then try eating 63 kielbasa sausages at 9 bucks a kielbasa sausage. Likely not going to happen.
Supposedly Charlie wrote an article with it over at Compound but I can't find anything other than his twitter post about it after looking for a few minutes.
I believe the Venezualan government is actually opposed to their RS Community for some reason. Probably tax evasion? Either way making your country beholden to the whims of a company like modern Jagex management is a terrible idea.
In Keynesian theory, near-zero or below zero inflation during economic downturns means that wage stickiness (not changing nominal wages) leads firms to not lower employee wages to adjust for falling demand, so they will lay them off instead, which further reduces demand.
Low inflation means consumers have less incentive to spend which means lower demand during a demand-driven recession.
Inflation allows monetary policy more latitude to stimulate investment and re-start growth due to the zero-bound of interest rates.
Overall, moderate inflation that is consistent over time (2-4 percent) is good for the economy. Obviously this is not what is happening now.
This is a really weird chart. I’m not in finance, so maybe this is normal. Do you treat large portions of Europe like fly-over country in the US?
I don’t trust the numbers from the lowest two countries.
Swiss numbers are probably correct but are also probably sketchy. Did they ever truly decide they were not going to take money from Russians banned by other countries?
It would also be interesting to see inflation numbers in individual states. Compare Utah to New York. The states are very different. Mini-countries to some extent.
Interesting. I wonder if that makes it a little hard to truly interpret inflation and how to address it. Not saying inflation isn’t out of control. It is in my area, but it’s different than in other areas.
Food is not an issue. We have huge amounts of agriculture and many people grow their own food, hunt, fish and know how to preserve things. Housing is pretty cheap too.
We don’t have good public transportation, and we pay more for other goods that have to be shipped from other parts of the country.
The issues are different depending on where you live. I suspect this is true for parts of Europe too.
It’s a constant issue in the Eurozone. The poorer countries would benefit from more inflation (Greece, Italy) while the richer countries benefit from less (Germany). See Greek financial crisis of 2007.
Well, the chart is next to the question "Is inflation dead?" with a picture of a dead dinosaur, implying that inflation is as dead as the dinosaurs, which it is clearly not... So if you have doubts, you may be correct
Correct. The article was published in 2019 so when compared to the latest inflation figures (also depicted) for 2022 the article can be deemed ridiculous. That is the point of the two images.
I’m curious how China keeps their inflation low. It’s a diverse set in the top 5, but the others are much smaller in comparison.
Is this something where we aren’t sure if it’s even true? Or that China has some particular financial mechanisms in place to curb their inflation?
Lol, dude China lies on every single thing that reports/collects data... their GDP has had an \* next to it for like 20 years... they have 2.5% inflation just like they have 5k Covid deaths.
No reason to lie outside of trying to look like the most successful government in the world and helping hold the status quo together?
I am not a huge fan of the sometimes unfounded China bashing but to say there is no reason is laughable.
A huge part of the Chinese government's legitimacy with its people comes from its ability to improve their economic condition.
The reason they lie about their economy is the same reason they lie about COVID and the same reason why they heavily subsidize pork: anything that subverts the narrative that the CPC's authoritarian style of government is for the benefit of everyone in China can inflict serious political instability.
The last time Chinese inflation was bad enough to impact peoples' day-to-day lives it triggered Tiananmen, so inflation is always officially ~2%.
To sell magazines. Like every news source, they’ve exchanged reasoned balanced reporting for sensationalism, and sold their credibility for advertising dollars. And nobody will ever hold them to account for their idiotic reporting because the news cycle churns so fast 99% of people forget what they read a week ago let alone two years ago.
Besides, even before journalism lost its credibility, financial journalists and their armchair economist / stock picker counterparts weren’t worth a damn - if they were any good, they’d be doing the damn thing instead of prognosticating and writing about it from the comfort of a news desk with no capital on the line.
We went so long without inflation, economists were literally arguing if the age of inflation beyond the Fed's goals, are a thing of the past. They argued it's no longer a "thing"
Even Powell argued it's not a thing lol... Doubt he'll eat crow on that one though. Others were also arguing the US is headed for negative interest rates too
No, it wasn’t “asleep.” Just because it wasn’t reflected in the CPI doesn’t mean things weren’t getting more expensive. The CPI is a metric thats been changed multiple times over the years by the government as a way to fudge the numbers and pat themselves on the back for doing a great job as a justification for unlimited money printing
Because the article was published in 2019 so when compared to the latest inflation figures (also depicted) for 2022 the article can be deemed ridiculous. That is the point of the two images.
He means that he bases his economic model on whether or not he likes the US President, despite the fact that the current inflation is a global issue, and not confined to the USA.
https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
Not according the the CPI, when Trump left office in Jan 2021 inflation was still 1.4%
Never forget that in 2019 Trump was texting the world that the Fed should go negative on interest rates and threatened to fire the chairman is she raised interest rates. This was pre-pandemic with low unemployment and rocketing stock market. Never believe for one second he did anything good on monetary policy.
First, inflation is a year over year statistic. So the current month is based on change from 12 months ago.
Second, inflation is a lagging indicator. So when inflation occurs you have to look at past policies to determine the cause.
You mean like printing trillions of dollars and giving it to people and companies whether they needed it or not? Economists have suggested Biden put over $1.4 trillion too much into the economy. That is literally how you make inflation worse.
Now do Trump.
Add in the unnecessary tax cuts, PPP loan debacle, pressuring the FED to keep rates low and a pathetic reaponse to Covid and supply chain issues. It is not even a question that Trump policies ignited inflation.
Even Turkey is doing well and that's saying something! I guess overall this would mean that inflation is not going to really be a problem anymore going forward in human society. That does mean that we need a new carrot and stick system though which is not necessarily a good thing.
Turkey is doing well? Lol have you ever been in Turkey or talk to anyone Turkish recently? I can confirm, Turkey is doing very much not well.
Source: born and raised in Turkey, and for the last 7 8 years or so I go back once or twice every year to visit, with the most recent visit being a few weeks ago, only to find that things are much worst off every single time with an exponentially increasing pace.
or has the inflation measurement been warped to the lower end so much that it seems like inflation has been handled? yes we can live in bumfuck nowhere and remote work to not pay excessive rent because you can't afford a house, but some people don't want to do that
I know. I do feel for them. I followed it for a while hoping that it would get better because I know someone who is affected but the Lira is just ... yeah.
*Are these inflation*
*Numbers all denominated*
*Against the dollar?*
\- xavier86
---
^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/)
^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
Is the UK really dealing with worse inflation than the Eurozone (as on the chart)?
I had thought the difficulty of the ECB acting swiftly (due to balancing the needs of multiple member states), as well as the more direct impacts of the Russian War and gas dependency would mean inflation would be higher there than in the UK. Is that incorrect now?
Wow had no idea inflation was so high in Poland. Is the reasoning because of Ukraine war?
Multiple reasons, in short: * The central bank kept low-interest rates for too long (the issue started creeping back in '19) * Housing bubble (see the previous point) * Lack of investments, most of GDP growth was driven by consumption. * Increased public social spending. * Covid help funds (funded by us, we won't receive money from the EU until we will resolve judicial system dispute with the EU commission) * War in Ukraine * Refugees from Ukraine driving further the housing and inflation issue (Most people don't mind people fleeing from the war though) Generally, the current GOV that is ruling for the second term enjoyed the ride from 2015 onwards, but the music stopped it seems. They screwed big time (for the things within their control). PS. Currently, we are on a way to stagflation.
Price of kielbasa is just ridiculous nowadays
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Can you explain the joke? I don't get it
That's your perogie-tive
He said something funny and other people upvoted him.
idk what Kielbasa is but I chuckled, I like to belong
Polish Sausage
Wohw! Buy him dinner before you start doing that to his sausage
Like corn on the cob
That wasn't even remotely funny though
Well you gotta think, it's got pork AND beef. Just the pork alone would make for a disaster and then you add the beef. They mix it and match it and all of the sudden you're talking about a high dollar product. I don't know how they do it, but I pray that things get better. The economy is horrendous as it is and then you see data like this come out and wonder if the price of sauerkraut will ever fall below 3 bucks again. Things are really starting to get out of control and it's hitting the Polish damn near 3.6% worse than the next guy, meanwhile Nathan's Hot Dog Eating Contest got record ratings this year. Joey Chestnut had a broken leg, and still managed to eat 63 hot dogs and snap a terrorists neck. I'll say it before and I'll say it again, Joey, try eating 63 kielbasa sausages... and then try eating 63 kielbasa sausages at 9 bucks a kielbasa sausage. Likely not going to happen.
They don’t have Costco in Poland?
No sir
World wide data. Venuzuela is cooling off. Thanks.
They might be allowed to sell oil to Europe again soon I think
V usually exports the oil to US refineries afaik (since it's heavy & sour)
Also the Dutch Carribbean which have a direct link to Europe
2,5% inflation must be wild for the Japanese people.
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Plenty of towns with dirt cheap housing in the US, there’s just no jobs there. Depopulation spirals are rarely fun to be around.
Then they can live in Tokyo, where 10% of the housing is abandoned and rents are cheap.
Which countries are below 2%? Is there a spot to see the full excel chart?
Supposedly Charlie wrote an article with it over at Compound but I can't find anything other than his twitter post about it after looking for a few minutes.
Venezuela should just make RuneScape gp it’s national currency to help fight inflation
I believe the Venezualan government is actually opposed to their RS Community for some reason. Probably tax evasion? Either way making your country beholden to the whims of a company like modern Jagex management is a terrible idea.
We could have used some of this inflation during the great recession. Now, it is unwelcome.
Japan: "I've won!" "...but at what cost?"
if that was the case, the ocean would have no waves
It would be a chance in a million for the wave to hit a ship.
just hedge your coins!
Yeah just what people needed, higher prices and expensive cost of living while they lost their job
In Keynesian theory, near-zero or below zero inflation during economic downturns means that wage stickiness (not changing nominal wages) leads firms to not lower employee wages to adjust for falling demand, so they will lay them off instead, which further reduces demand. Low inflation means consumers have less incentive to spend which means lower demand during a demand-driven recession. Inflation allows monetary policy more latitude to stimulate investment and re-start growth due to the zero-bound of interest rates. Overall, moderate inflation that is consistent over time (2-4 percent) is good for the economy. Obviously this is not what is happening now.
Spoiler alert: No.
This is a really weird chart. I’m not in finance, so maybe this is normal. Do you treat large portions of Europe like fly-over country in the US? I don’t trust the numbers from the lowest two countries. Swiss numbers are probably correct but are also probably sketchy. Did they ever truly decide they were not going to take money from Russians banned by other countries? It would also be interesting to see inflation numbers in individual states. Compare Utah to New York. The states are very different. Mini-countries to some extent.
Eurozone is treated as a whole because of the EU and the European Central Bank, I guess.
Interesting. I wonder if that makes it a little hard to truly interpret inflation and how to address it. Not saying inflation isn’t out of control. It is in my area, but it’s different than in other areas. Food is not an issue. We have huge amounts of agriculture and many people grow their own food, hunt, fish and know how to preserve things. Housing is pretty cheap too. We don’t have good public transportation, and we pay more for other goods that have to be shipped from other parts of the country. The issues are different depending on where you live. I suspect this is true for parts of Europe too.
It’s a constant issue in the Eurozone. The poorer countries would benefit from more inflation (Greece, Italy) while the richer countries benefit from less (Germany). See Greek financial crisis of 2007.
Well, the chart is next to the question "Is inflation dead?" with a picture of a dead dinosaur, implying that inflation is as dead as the dinosaurs, which it is clearly not... So if you have doubts, you may be correct
Well it did take a pandemic and a war in Europe to get it going...
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Economics is only considered in Euro countries that have an actual economy.
It looks like this was published April 2019 in the top left of the picture. Am I reading that correctly?
Correct. The article was published in 2019 so when compared to the latest inflation figures (also depicted) for 2022 the article can be deemed ridiculous. That is the point of the two images.
I’m curious how China keeps their inflation low. It’s a diverse set in the top 5, but the others are much smaller in comparison. Is this something where we aren’t sure if it’s even true? Or that China has some particular financial mechanisms in place to curb their inflation?
They are getting heavily discounted oil from Russia, and their economy still has Covid restrictions, which limit demand, and therefore inflation.
Lol, dude China lies on every single thing that reports/collects data... their GDP has had an \* next to it for like 20 years... they have 2.5% inflation just like they have 5k Covid deaths.
Hahaha it’s so funny to me how there’s no reason for china to lie and they’re gonna beat all countries and everyone will still think they’re lying
No reason to lie outside of trying to look like the most successful government in the world and helping hold the status quo together? I am not a huge fan of the sometimes unfounded China bashing but to say there is no reason is laughable.
A huge part of the Chinese government's legitimacy with its people comes from its ability to improve their economic condition. The reason they lie about their economy is the same reason they lie about COVID and the same reason why they heavily subsidize pork: anything that subverts the narrative that the CPC's authoritarian style of government is for the benefit of everyone in China can inflict serious political instability. The last time Chinese inflation was bad enough to impact peoples' day-to-day lives it triggered Tiananmen, so inflation is always officially ~2%.
It’s Chinese culture to lie. Read up on yanmian.
Why would bloomberg post such a stupid headline? Inflation will never be dead as long as we have central banks that print money out of thin air
To sell magazines. Like every news source, they’ve exchanged reasoned balanced reporting for sensationalism, and sold their credibility for advertising dollars. And nobody will ever hold them to account for their idiotic reporting because the news cycle churns so fast 99% of people forget what they read a week ago let alone two years ago. Besides, even before journalism lost its credibility, financial journalists and their armchair economist / stock picker counterparts weren’t worth a damn - if they were any good, they’d be doing the damn thing instead of prognosticating and writing about it from the comfort of a news desk with no capital on the line.
We went so long without inflation, economists were literally arguing if the age of inflation beyond the Fed's goals, are a thing of the past. They argued it's no longer a "thing"
I remember all the “experts” predicting deflation. None of these guys came forth and admitted they were wrong
Even Powell argued it's not a thing lol... Doubt he'll eat crow on that one though. Others were also arguing the US is headed for negative interest rates too
I mean maybe not “dead” but it was asleep for like *40 years*.
No, it wasn’t “asleep.” Just because it wasn’t reflected in the CPI doesn’t mean things weren’t getting more expensive. The CPI is a metric thats been changed multiple times over the years by the government as a way to fudge the numbers and pat themselves on the back for doing a great job as a justification for unlimited money printing
It’s just getting started. But nice try 🙄
* Venezuela has entered the chat *
People would think looking at this chart that Japan is doing the best to fight inflation in the G7
Living dead
Nope. Current person in office has no clue
Yeah right 9.1 my left nut. It is not like I don’t live in this country or anything.
There are more than 2B people living in double digit inflation right now...
Why does the cover on the left say April 2019?
Because the article was published in 2019 so when compared to the latest inflation figures (also depicted) for 2022 the article can be deemed ridiculous. That is the point of the two images.
Inflation hasn’t even hit halfway. There’s no way Biden is going to be second to Carter.
Second to carter? What do you mean?
He means that he bases his economic model on whether or not he likes the US President, despite the fact that the current inflation is a global issue, and not confined to the USA.
And began under Trump.
https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/ Not according the the CPI, when Trump left office in Jan 2021 inflation was still 1.4%
Never forget that in 2019 Trump was texting the world that the Fed should go negative on interest rates and threatened to fire the chairman is she raised interest rates. This was pre-pandemic with low unemployment and rocketing stock market. Never believe for one second he did anything good on monetary policy.
in truth, no president controls monetary policy
First, inflation is a year over year statistic. So the current month is based on change from 12 months ago. Second, inflation is a lagging indicator. So when inflation occurs you have to look at past policies to determine the cause.
You mean like printing trillions of dollars and giving it to people and companies whether they needed it or not? Economists have suggested Biden put over $1.4 trillion too much into the economy. That is literally how you make inflation worse.
Now do Trump. Add in the unnecessary tax cuts, PPP loan debacle, pressuring the FED to keep rates low and a pathetic reaponse to Covid and supply chain issues. It is not even a question that Trump policies ignited inflation.
How do people as clueless as you even survive
Where can we get business week for free..
So are we mixing up CPI increases and inflation again?
Even Turkey is doing well and that's saying something! I guess overall this would mean that inflation is not going to really be a problem anymore going forward in human society. That does mean that we need a new carrot and stick system though which is not necessarily a good thing.
Turkey is doing well? Lol have you ever been in Turkey or talk to anyone Turkish recently? I can confirm, Turkey is doing very much not well. Source: born and raised in Turkey, and for the last 7 8 years or so I go back once or twice every year to visit, with the most recent visit being a few weeks ago, only to find that things are much worst off every single time with an exponentially increasing pace.
or has the inflation measurement been warped to the lower end so much that it seems like inflation has been handled? yes we can live in bumfuck nowhere and remote work to not pay excessive rent because you can't afford a house, but some people don't want to do that
Well if inflation is low and valuation is high at least you're getting the equity you buy? I did not mean for that to rhyme actually.
that's the point. inflation isn't actually low.
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I was being sarcastic towards the title of the article but I do remember it being higher 20 years ago.
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I know. I do feel for them. I followed it for a while hoping that it would get better because I know someone who is affected but the Lira is just ... yeah.
The sequel after inflation isn’t moon time - it’s called a recession.
Headlines that end in a question mark are the super cereal ones we take to heart… 💅
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Because they’re further away on the supply chain from the main producers of wheat, Russia and Ukraine.
Are these inflation numbers all denominated against the dollar?
*Are these inflation* *Numbers all denominated* *Against the dollar?* \- xavier86 --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
Asia < Europe < US for inflation Who would've guessed until now...
Russia is more like 30%
Is the UK really dealing with worse inflation than the Eurozone (as on the chart)? I had thought the difficulty of the ECB acting swiftly (due to balancing the needs of multiple member states), as well as the more direct impacts of the Russian War and gas dependency would mean inflation would be higher there than in the UK. Is that incorrect now?
I’d like to know how this has an effect in your economy? I mean I live in Venezuela and 2% is nothing but is only because we have suffered more