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The State of Inflation in the United States


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    So this is more of a question rather than something I've come to the conclusion of. Everything that's been going on in 2020 has caused a huge amount of businesses to slow down over the past few months, with some coming to an almost immediate halt that is just now starting back up. With this came a really interesting phenomenon. A ton of products have either been unavailable for numerous reasons, too available (like gasoline, but for numerous other reasons), groceries that have not been purchased, etc. I could go on and on about all the ways the virus has cause both supply and demand to go haywire, but there's just too many avenues to list.

    People have not been able to spend money on all the usual, while also spending money on essential items like food, housing, bills, etc. This makes me curious. What does this do for inflation? Does it go back to the standard of around .1% to .3% yearly once things go back to "normal"?

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    Think we are in wait and see mode right now. We have the economy reopening in most of the country gradually atm, but we don't know the full effects of being shut down for 2+ months. And we also don't know if a potential 2nd wave will call for future shutdowns.

    Assuming the worst is over and things go 80-90% back to normal by end of summer sometime, or perhaps in the fall, I would guess inflation would be.. a bit lower. Only reason for thinking that is prices on consumer goods and real estate will/should drop across the board, to attract buyers and encourage spending. And this could last several months or even a year or two. Especially since the FED dropped interest rates indefinitely.

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    WyattTown Wrote:

    Assuming the worst is over and things go 80-90% back to normal by end of summer sometime, or perhaps in the fall, I would guess inflation would be..

    True, but that's if things go back to normal, which many have said there may be an uptick.