Nalle Loc: Tellus

https://www.axios.com/climate-extreme-weather-inflation-34705b1f-20c2-45be-8333-3dc5b419a27e.html

Your grandkids!

captivecookie Loc: Washington state

I'm not sure the article successfully explored the depth of the subject. Not sure I came out with a good understanding of how extreme weather feeds inflation, only that it can kick up prices a bit. My understanding is that inflation is a bit more complex than simple price adjustments in one area.

Well, there are quite a few people on this forum who understand finances more than me, so perhaps I'll learn more as we go on.

Nalle Loc: Tellus

Good start for your thinking.

InfiniteISO Loc: The Carolinas, USA

There have always been extreme weather events. What we have now are global communication networks, global markets for regional goods, and entrepreneurs that make their living in market speculation. All of these features of today's economy make price swings more drastic. I'm afraid this new market reality is never going to change. The weather and climate, on the other hand, are always going to stray from textbook averages.

Fotoartist Loc: Detroit, Michigan

You are exactly right. Price increases are not inflation they are just rising prices. Inflation is an increase in the money supply by the Fed. Res. and the govt. printing it.

Tex-s

Inflation is the Lex Luther supervillain to Superman’s supply and demand principle. Everyone knows things in high demand command high prices with scarcity an exponential magnifier of apparent demand. Inflation is the same function looked at in the mirror. When nations print money with no corresponding concrete or marketable value attached, what you end up with is roughly equivalent to a gas filling it’s container.

Before money is printed the market product (M) to currency (C) ratio, says C amount of currency corresponds to M amount of market value. Double C and now 2C amount of currency corresponds to M market value. Congrats. Your money now has half the purchasing power.

Now try a decreasing M value, due to closed businesses, lost jobs, people perpetually on Unemployment, raising interest rates (always done to try to slow the inflation rate) and raising taxes, and the value of the money is now even less than half what it was.

https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp

captivecookie Loc: Washington state

That explanation helps, thanks.