Why Annual Inflation Falls While Prices Keep Rising
Summary
Hollow Point Trading shares a video explaining how annual inflation can fall even when prices rise in the latest month. A hypothetical price index moves from 100 to 104 in February, then reaches 110 the following January before rising another 0.2% in February. Understanding this comparison helps the community interpret inflation data.
https://youtu.be/m-nB7fjaFQQ
Annual inflation can fall while prices rise this month #Inflation #...
An annual inflation rate can fall even while the latest monthly price index rises. Consider a hypothetical index using one consistent reference base. Last January it was one hundred. Last February it jumped to one hundred four. This January it reaches one hundred ten, a ten percent annual increase. This February it rises another zero point two p...
