Is inflation here to stay?

[simonova]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

[_act_]

Is inflation here to stay? Yes. Why? Because inflation is created intentionally by the government.

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

This is not new at all, you can check the price of food, goods and services in your country for the last 10 t0 20 years ago to now to know that there has been permanent inflation from time to time.

Are there really any ways to combat inflation permanently ?

To combat what the government created? That is not possible. Governments created the fiat which is a complete scam. Cause inflation in the name of protecting their foreign reserves.

[bettercrypto]

I think inflation is a tool of the government. Although I'm not certain about this, it's what I've been seeing and noticing for the past few decades. Even when I was a child, this was already
a problem, and now that I'm in my 40s, this problem is still here. That's why prices are high now compared to before.

And if those in government are also corrupt, the inflation rate will surely rise quickly in a country like this. I just hope our country doesn't end up in a hyperinflation situation,
because it would be quite worrisome if it happens.

[abhiseshakana]

Inflation may become permanent (high inflation over a prolonged period) if the following conditions occur simultaneously:

• The central bank loses credibility (does not dare to raise interest rates due to the government's debt burden).
• The government relies on deficit monetization/printing money to pay debt/deficits.
• Supply chains continue to be disrupted, leading to higher prices for structural inputs.
• Wages and prices adjust/continuously catch up.

Although not the primary factor, I believe that individual greed (buying what one wants rather than what one needs) plays a role in fueling discretionary demand, adding to demand pressures, especially if this desire is met through debt. Greedy consumption accelerates the demand cycle and triggers inflation when the economy is near full capacity.

Then there is the role of the trouble-making trio: the dollar (fiat), banks, and the stock market, which contribute to inflation.

Dollar, As the global reserve currency, a weakening dollar makes import costs more expensive for countries holding/many transactions in dollars. However, a strong dollar depresses the price of energy/commodity imports (in USD) for holders of other currencies.

Banks, Creating credit increases the money supply, driving demand and inflation if the credit increases real spending, not just the exchange of assets. Prolonged credit easing (playing with interest rates and terms) increases the risk of price pressures.

Stock Market, Rising asset prices (the wealth effect) make households wealthier, increasing consumption, potentially putting pressure on prices. Is the diversion of funds to productive investments accompanied by increased output?

But I believe permanent inflation can be avoided, as long as the central bank adopts the right policies without political pressure. Technological efficiency and productivity (automation + AI) lead to cost effectiveness and mitigate price pressures. Finally, the dominance of older people in many countries automatically reduces aggregate demand, thereby suppressing inflation. To combat inflation, maybe we can try reduce incentives for debt-funded consumption through tax/credit regulations and financial education. Encourage productive savings and investment (tax incentives, MSME financing), so that the wealth effect doesn't just drive demand for non-durables.

[_act_]

But I believe permanent inflation can be avoided

Why did you believe permanent inflation can be avoidable when data proved to us that it is not avoidable but intentionally by the government? Or let me put it this way, that the government make it permanent in the name of benefiting the country not to collapse. Just forget about all the approaches the government are doing to make sure inflation does not continue, at the end, the inflation continues. Anything that continue to happen is permanent. Just check each country inflation for the last 10 to 20 years to know and see how it is unavoidable intentionally by the government.

[zaim7413]

Inflation is like the wind, always there but never catchable. Inflation will always exist because it's caused by factors that influence prices, such as supply and demand, production costs, and monetary policy. The government is the driving force behind inflation, so it can never be eradicated.

There is no way to combat inflation permanently, but to reduce the inflation rate must be through government intervention such as the central bank can raise interest rates and increase productivity.
I emphasize again, inflation is an economic phenomenon created by the government, so there is almost no single solution to overcome it, unless the government itself has the intention to overcome it.

[yudi09]

But I believe permanent inflation can be avoided

Why did you believe permanent inflation can be avoidable when data proved to us that it is not avoidable but intentionally by the government? Or let me put it this way, that the government make it permanent in the name of benefiting the country not to collapse. Just forget about all the approaches the government are doing to make sure inflation does not continue, at the end, the inflation continues. Anything that continue to happen is permanent. Just check each country inflation for the last 10 to 20 years to know and see how it is unavoidable intentionally by the government.

As long as the level of system management is transparent, especially the policies made by them, in short, I think it can be minimized in the long term.
A good government in a country is one that does not cut the chain that it thinks is good to continue. In reality, every period often experiences changes and there are even policies that are not continued because they are considered not to belong to the current government.

For example, in the case of debt. The previous administration sought to continuously reduce the national debt in order to prevent something that would have an impact on high inflation. When a new administration takes office, efforts to continue reducing debt must also be continued, even though development must be carried out. That is where transparency is needed, especially in policy.

To avoid this permanently, I have not yet found a solution.

[WillyAp]

Society is based on growth.
So the money in circulation needs to grow too. A society based on growth needs inflation to keep going.
Happy where the people when the inflation rate wasn't like a sword dangling over them.

[Hispo]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

You need to understand inflation is a tool which is used by some governments in order to make the economy of their country to behave in an specific way.
For example, a relatively stable inflation of 2% per year is a rate which is used by the government of the united states in order to increase consumption in general, if people are aware their money will be worth less and less as time goes on, then they will be pushed towards spending, which as the same time makes producers to be more efficient in general. That is the american approach, on the other hand, there are countries which go with lower rates, like 1 percent per year or even less, but in general if the economy of a country is heavily dependant on consumption, then they need a inflation rate which is steady and constant.

[WillyAp]

You need to understand inflation is a tool which is used by some governments in order to make the economy of their country to behave in an specific way.

Humans behave that way once they suffer under higher prices. Human behavior.
it is not a US invention, Many behavior patterns governments believe in, come from Stalin.

[palle11]

Are there really any ways to combat inflation permanently ?

No there are none because it is already a creation that the system needs and uses to regulate itself. Sometimes innocently inflation is created by government policy to produce or reduce circulation of money in the society. Example is government can increase inflation by printing of currency because they want money to be in circulation to encourage investment, increasing of workers salary too can cause inflation. So there is no way that inflation will go away from the society and every country has a level of inflation, it depends on how to control the effect on the masses. So government can give subvention, subsidy, loans, create more jobs to reduce effect of inflation.

[Royal Cap]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

In my opinion the picture is mixed, Inflation has remained above target for a long time in some countries, particularly due to pressure from services and food prices and  at the same time many economists say that the future will depend largely on the resolve of central banks and the confidence of bond markets if policymakers firmly restore price stability persistently high inflation can be avoided.


But supply side shocks such as those from energy, global supply chains and changes in trade rules are now more common and are making them harder to control, that means there are two possibilities the old 2 percent target could return if policymakers remain consistently aggressive or the other is that in some cases we will see new levels of higher core prices that require adjustment, Actually the behavior of central banks and the government’s supply side policies will ultimately determine the outcome.

[Fortify]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

You say this as inflation has been trending down for the last couple years from much higher peaks. We are lucky that inflation is around 3-4% in most places and that seems like a semi stable floor that we might expect. We went through an era where inflation was near 1% in many countries which was itself an anomaly and outside the norm, it was actually getting to a dangerous point of stagflation or deflation which often indicates a zombie economy that is not helpful. Be grateful for where we are currently at, things like the Russian invasion of Ukraine and the USA trade war stopping would probably help a great deal

[BALIK]

I think inflation is a tool of the government. Although I'm not certain about this, it's what I've been seeing and noticing for the past few decades. Even when I was a child, this was already
a problem, and now that I'm in my 40s, this problem is still here. That's why prices are high now compared to before.

And if those in government are also corrupt, the inflation rate will surely rise quickly in a country like this. I just hope our country doesn't end up in a hyperinflation situation,
because it would be quite worrisome if it happens.

Yes, inflation is a government tool, inflation is a sneaky tax by the government to take money from the people. Inflation is a taxation tool that the government uses to hit everyone, no one can avoid it and the poor are always the ones who suffer the most.

A corrupt government will make inflation worse but that doesn't mean we don't have preventative measures. If we limit holding a lot of fiat money, instead convert most of our assets into gold, bitcoin. Even if hyperinflation occurs, it won't affect us too seriously.

[Cryptohygenic]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

The central banks can not afford to let inflation be permanently roaring otherwise, it would cause very high level of fiats devaluations and even when there had to be increase in interest rates, definitely will be an erosion on savings due to currency stability of values while inflations continuously soaring depreciating purchase power.
To curb this economy disaster is why there is a mandate for the central banks and authorities to control inflation control.

[woez]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

I suppose that's true, but an interesting assumption is that as long as fiat money remains in circulation, this story will continue, and the cycle will continue. Essentially, printing money for various reasons, in the name of the people and the welfare of the masses, will become the decision-making force of governments and stakeholders, always ending with the statement that monetary policy is the quickest solution when needed, to control and balance it. If inflation in a country could be permanently eliminated, I'm sure many other countries would visit to learn the tricks and techniques, or would be frequently invited to global economic events.

It's not wrong to worry about something that carries risks, whether short-term or long-term, when it feels difficult to navigate, it can indeed provide early earnings, and we have strategies for dealing with it, what to do to protect ourselves, and how to deal with it. Simply put, don't overthink and worry about it, because the more you think about it, the more it will haunt us.

[YOSHIE]

Are there really any ways to combat inflation permanently ?

Yes, as far as I know, inflation still exists and cannot be eliminated, but even though inflation cannot be eliminated, if the government and society can work together, of course inflation can be controlled to a safe position. how to maintain supply and demand, meaning that as long as the economy is stable and improving, demand exceeds supply.

Another way that the government can do is maintain people's welfare from an economic perspective so that inflation is controlled, as well as controlling the increase in production costs and also ensuring that there is no budget deficit for the state, Likewise in maintaining raw material prices and so on, the point is that inflation is still there and cannot be eliminated, as I said above.

[Ambatman]

Short answer, Human wants are insatiable and there are scarce resources.
Zero inflation means prices remain the same forever
And sadly as we consume certain things gets scarcer.
This means there would be constant pressure on demand.
Besides inflation has its strength in respect to economic growth
Hence why central banks target around 2% and not zero because deflation is at the other spectrum
And that has its disadvantage.

[Despairo]

Don't forget with population that keep increasing.

Inflation is good, but not for high inflation and yeah I think we will suffer high inflation rate for many years since people are struggling with the current economy. Many people who were fired from their company after working for a decade or more, don't have a specific skill to work in other company.

Even some small shops can't survive because the big companies able to sell their product directly to costumers without through small shops/resellers.

[BABY SHOES]

Don't forget with population that keep increasing.

The human population is now 8.2 billion according to google data, and it will probably continue to increase.

Inflation is good, but not for high inflation and yeah I think we will suffer high inflation rate for many years since people are struggling with the current economy. Many people who were fired from their company after working for a decade or more, don't have a specific skill to work in other company.

Inflation is not high but it continues to eat away every year making the economy more difficult for those who continue to struggle today.
Prices of basic commodities continue to rise, but salaries remain the same with no increase.

Even some small shops can't survive because the big companies able to sell their product directly to costumers without through small shops/resellers.

Especially now that there are online shops, many large companies sell directly to customers at lower prices, so small shops will not last long.