Only temporary inflation? Let’s see the answers from the USA

Inflation will remain high for a long period of time or it will decline. Will prices remain high or, after a peak, will they fall, therefore with a deflationary push, due to the adaptation of supply and to overcome logistical bottlenecks?

The University of Michigan is conducting periodic research on consumers and their feelings regarding prices, costs, and their desire to purchase real estate, durable goods and consumer goods.

Regarding inflation expectations, we see that consumers have declining inflation forecasts for both one year (in red) and five to ten years (in blue)

So consumers see short and medium term inflation falling. Well, it should be, in the overall judgment, an episode that is running out.

Regarding the level of prices, are these judged to be fair and affordable by consumers, or is it believed that prices will stabilize at an excessively high level?

The three indicators, real estate (red line 9 durable goods (blue line) cars (orange line) indicate how the current conditions of sale regarding prices are considered "Bad" by consumers. These consumers therefore believe that prices are high and that This will lead to a drop in demand (if prices are NOT considered good consumers DON'T buy) and therefore will pave the way for a drop in demand.

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The article Inflation only temporary? Let's see the answers from the USA comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/inflazione-solo-temporanea-vediamo-le-risposte-dagli-usa/ on Sat, 12 Jun 2021 06:00:29 +0000.