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MoM gives you a more current view of the state of inflation. Even better is to annualize the previous 3m, 6m, 12m

Why care about inflation at all? Well, you can reference the history of most South American countries for that



Ok Adam "I answer questions you didn't really have" Arthur.


You had one question in your comment which I answered, whether rhetorical or not.

Saying "we can have a soft landing" with no context or supporting reasoning isn't really saying anything at all. History shows only really 1 instance of a "soft landing", and the economy was less overheated and policy much more proactive back then. Back then the Fed actually tried to move ahead of inflation by assessing structural tightness... not reactive based on CPI


No, I asked how the MoM compares to the YoY. Not for a definition of MoM.

Anyway, here is MoM.

https://econbrowser.com/archives/2023/07/inflation-at-month-...

You are correct that the decline is exaggerated by base effects; but it's also true that there has been a fairly steady decline last few quarters (disinflation)


The first line of my original comment states that MoM CPI will be low over the next few months, in my opinion from factors that will ultimately be fleeting. So you seem to be having a conversation with yourself that is unrelated to my original post.

MoM inflation on its own doesn't tell you anything about structural inflation. MoM fell many times in the 70s/80s only to rebound later due to overly optimistic policy makers assuming a downward trajectory would be sustained without further action from them. It's effectively the exact same situation we're in now... only question is whether the Fed chooses to repeat that path or not




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