PlayasBum t1_jefobh9 wrote on March 31, 2023 at 5:48 PM

Reply to comment by xdzgor in Eurozone inflation falls sharply as energy prices drop by misana123

If you go 0 to 60 in 3 seconds and then 60 to 70 in 3 seconds, your acceleration has decreased in the last 3 seconds, even though you went faster. It’s the same thing.

ArgumentWide7165 t1_jefv1yz wrote on March 31, 2023 at 6:32 PM

Perfect explanation.

It’s not a deflationary period, just less inflation. We probably won’t see a deflationary period so now is the time to ask for a raise.

xdzgor t1_jeg1pny wrote on March 31, 2023 at 7:17 PM

Don't quite get the analogy.

For example

Feb 2022 price = $1000

Mar 2022 price = $5000

Feb 2023 price = $1150

Mar 2023 price = $5770

This shows a 15% increase Feb 2022 - Feb 2023

and 15.4% increase Mar 2022 - Mar 2023.

Do the numbers show a fall in inflation?

PlayasBum t1_jeg8653 wrote on March 31, 2023 at 8:00 PM

Your numbers are inherently flawed. Not sure if it’s because of you’re lack of understanding or intentional. You cant have 1xxx in February and have 5xxxx in March.

xdzgor t1_jeg99a4 wrote on March 31, 2023 at 8:07 PM

They're just examples - there were no actual numbers in the article, only dates and percentage increases

PlayasBum t1_jegbcku wrote on March 31, 2023 at 8:21 PM

In your example you have 500% inflation from F22 - M22. Then 4xx% deflation M22 to F23. Then almost 500% inflation again. Although they technically fit the headline, the narrative won’t be the same, as you likely have currency instability. More accurate numbers would be

Feb 2022 = $100 Mar 2022 = $100 Feb 2023 = $115 Mar 2023 = $115.4

What they’re not showing, is January numbers, which hypothetically could look like

Jan 2022 = $100 Jan 2023 = $110

Adding that, you can see the rate of change YoY being 10%, 15%, 15.4%.

Not sure if that helps you visualize it better.