Comment Comment by _heimdall > Inflation is not prices; it is the rate of change in prices.Inflation is actually the increase in the money supply. The term is used wrong almost everywhere today.Price indexes like the CPI are what measure the change in prices of a set of goods.Inflation can influence prices since the supply of money changed, but they aren't directly linked.Edit: getting plenty of requests for a source here, especially because you will find countless sources online using the price increase definition.https://www.clevelandfed.org/publications/economic-commentar... parent _heimdall 2 years ago
Inflation is actually the increase in the money supply. The term is used wrong almost everywhere today.
Price indexes like the CPI are what measure the change in prices of a set of goods.
Inflation can influence prices since the supply of money changed, but they aren't directly linked.
Edit: getting plenty of requests for a source here, especially because you will find countless sources online using the price increase definition.
https://www.clevelandfed.org/publications/economic-commentar...