Inflation sceptics still abound
in the US.
They cite a broken Phillips curve,
technology, and the ‘Amazon’ effect depressing
retail prices as factors explaining why inflation is
low and will remain so. However , pure
concentration of being productive has led the
US workers to a point where they defer spending.
Additionally , the inclusion of ‘rainbow nomics’
into the US economy , has led workers to consider
security as opposed to spending. Thus ‘investing’
less into consumer goods they may need ,
therby reducing pressure on the inflationery
aspect of pricing
relationships between ISM manufacturing,
economic growth and inflation detailed above
suggest that inflation , without understanding
‘rainbow nature’ can provide misleading
conclusions on pricing.