submitted 11 months ago by luthis@lemmy.nz to c/asklemmy@lemmy.ml

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says: ..if households decided the worst was over and started to feel more confident about spending, it could push up inflation

But I thought it was the opposite;

More spending means more demand means more supply, which means production costs go down (due to economies of scale)… so inflation goes down?

But saving means less spending, means less demand, means less income for business, means costs go up.. so inflation would rise?

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[-] livus@kbin.social 3 points 11 months ago

No, spending makes inflation rise.

this post was submitted on 07 Dec 2023

28 points (96.7% liked)

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