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| Inflation and deflation do happen to single products. So by definition deflation occurred to corn, not by government printing or spending money. The CPI is just a bundle of products that the price is compared over time. In this bundle, some items inflate and others deflate.
Your point of supply and demand changing is correct and it is the most crucial factor when determining if a product will be inflationary or deflationary.
The quantitative easing program under Obama printed well over an additional trillion dollars compared to the printing of money during Covid. And yet inflation did not jump as a result of this.
Which brings us back to my original point. That government spending and printing is not the only cause for inflation. | |
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Trump's Tariffs = Depression
