Why would consumption spike in the last few months?
It's nominal, so not adjusted for inflation. You're paying more for the same amount of goods. It's the same shit when you hear politicians spout "record-breaking revenue" or "all time highs".
If you buy the same amount of goods, but the price went up 10, 15, 20% (or more in some cases), well, consumption "spikes" 10, 15, 20%... Not even counting the fact portions are smaller now as well.
Energy, especially diesel, touches everything in the economy. You might get a reprieve on some items like TVs or clothing, but perishable goods like food will feel the pain instantly.
Inflation's also a self-fulfilling prophecy. When people see prices climbing, they'll try to frontload their purchases and hoard in bulk to avoid the next price hike. Demand goes up, supply goes down, prices go up, and on and on.
It's nominal, so not adjusted for inflation. You're paying more for the same amount of goods. It's the same shit when you hear politicians spout "record-breaking revenue" or "all time highs".
All I hear is "the dollar is collapsing".
^this is correct.
If you buy the same amount of goods, but the price went up 10, 15, 20% (or more in some cases), well, consumption "spikes" 10, 15, 20%... Not even counting the fact portions are smaller now as well.
So energy price inflation has been that disruptive?
Energy, especially diesel, touches everything in the economy. You might get a reprieve on some items like TVs or clothing, but perishable goods like food will feel the pain instantly.
Inflation's also a self-fulfilling prophecy. When people see prices climbing, they'll try to frontload their purchases and hoard in bulk to avoid the next price hike. Demand goes up, supply goes down, prices go up, and on and on.