Inflation Expectations + Top Indicator to Watch in 2022

Date:

Inflation is a problem, Economy It’s not fate. At least it’s not destined yet.

Inflation is not always out of control. Spirals occur when consumers and businesses expect continued inflation. An extreme example of this is inflation that crippled Germany after World War I.Survivor at that time I have written:

Stay long [shop] The windows were extravagant as the shopping had to be done immediately. Even an additional minute meant a price increase. For example, a rabbit could cost 2 million marks by the time it entered the store, so I had to buy it right away. Millions of marks don’t really mean anything. It just meant that it meant more lag. The money package needed to buy the smallest item has long been too heavy in a trouser pocket. They were pounds heavy. … People had to start adding money to carts with wagons and knapsacks. I used a knapsack.

Consumers spend as soon as inflation expectations take hold. According to recent data, this is not the case at this time. According to consumer research, we don’t rush to buy high-priced items to avoid future price increases.

Source: New York Times..

Consumer inflation expectations

Many consumers will say it’s a good time to buy home appliances when the economy is expanding and prices are stable. They would also say it’s a good time to buy if the unemployment rate is low as it is today. However, prices are expected to rise significantly over the next year.

The low readings in this study show that consumers do not expect inflation to continue at their current pace. They seem to be giving the Fed time to prove that inflation will not rise any further.

Consumer expectations will change if the Fed fails to achieve low inflation within the next few months. If that happens, consumers who act as they expect higher inflation will, in fact, drive higher inflation. This happened in the 1970s, when the United States last experienced sustained inflation.

Consumer sentiment is one of the most important indicators to watch in 2022.


Michael Carrteeth Editor True Options Master, One Trade, Peak speed traderWhenPrecision profit.. He teaches technical and quantitative technical analysis at the New York Institute of Finance. Follow him on Twitter@MichaelCarrGuru.

click here participate True Options Master.

Inflation Expectations + Top Indicator to Watch in 2022 Source link Inflation Expectations + Top Indicator to Watch in 2022

The post Inflation Expectations + Top Indicator to Watch in 2022 appeared first on California News Times.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

FBI searched Mar-a-Lago estate in Florida, former President Donald Trump says – New Orleans, Louisiana

New Orleans, Louisiana 2022-08-08 23:54:00 – The FBI searched...

Boil water advisory issued for part of Sumner County – Wichita, Kansas

Wichita, Kansas 2022-08-08 23:37:12 – Sumner County, Kansas (KSNW)...

Snapchat officially introduces parental controls through a new ‘Family Center’ feature – TechCrunch

Snapchat launches its first parental controls today Announcement last...

Kevaughn Frater returns to New Mexico United – Albuquerque, New Mexico

Albuquerque, New Mexico 2022-08-08 23:33:37 – Albuquerque, New Mexico...