Welcome to the New Year! Photo by Anastasiia Rozumna on Unsplash High interest rates and the lingering possibility of recession feel like the hangover from a hard year of inflation fighting. Inflation still dominated much of the financial news last year, but I don’t think it will dominate this year again. So, it’s worth taking a minute to sort or wrap up the topic, and see where we are. In short, inflation has dropped significantly worldwide, we did not enter a recession in 2023 like most economists (myself included) predicted, and it all turns out to be a challenge for economic models.
100% Peter. I already drafted my next piece (hope to release next week) on why we all feel so bad even though inflation and other econ numbers improved. All exactly to your point.
I think it would be more useful to look at absolute changes rather than percentage changes. E.g. a change from -.25 to -.5 doesn't seem equivalent to one from 3.5 to 7.0.
Thanks!
100% Peter. I already drafted my next piece (hope to release next week) on why we all feel so bad even though inflation and other econ numbers improved. All exactly to your point.
I think it would be more useful to look at absolute changes rather than percentage changes. E.g. a change from -.25 to -.5 doesn't seem equivalent to one from 3.5 to 7.0.
This inflation does not reflect the real situation, as felt and experienced in everyday life.