Tom Keene, Jonathan Ferro and Lisa Abramowicz have the economy and the markets “under surveillance” as they cover the latest in finance, economics and investment, and talk with the leading voices shaping the conversation around world markets. This show is simulcast worldwide on Bloomberg Television and Radio.
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Inflation Easing: What Does It Mean?
Inflation, the measure of how much the prices of goods and services are increasing, has been one of the most pressing issues facing economies worldwide. However, there has been a recent sigh of relief as there has been some easing in inflation levels.
During the Bloomberg Surveillance on 03/02/2023, a discussion was held on the current inflation scenario, and the extent to which easing had occurred. This article aims to provide an overview of what inflation easing means and why it is significant.
What is Inflation Easing?
Inflation easing refers to the decrease in the rate at which prices are rising. Initially, prices tend to increase rapidly as demand for goods and services outstrips supply. However, with time, supply begins to adjust to demand, and prices begin to stabilize.
Inflation easing does not indicate a decline in prices but rather slower increases. This gradual slowing down is a good sign as it means that prices aren’t spiraling out of control.
Why is Inflation Easing Significant?
Inflation can have a significant impact on an economy, affecting everything from consumer spending and investment decisions to the cost of borrowing for businesses. As prices increase, consumers have lesser discretionary income, which can dampen demand for goods and services. Additionally, high inflation can lead to cost-push inflation, as businesses are forced to pass on increasing production costs to consumers to maintain their profit margins.
Inflation easing provides much-needed stability, allowing consumers to make informed spending decisions and businesses to plan for the future. Furthermore, it can lead to increasing business investments and higher disposable incomes, which promote economic growth.
How Does Inflation Easing Affect the Markets?
Inflation easing can cause a ripple effect in the financial markets. Firstly, it can have an impact on interest rates. Central banks often raise interest rates to combat inflation, but as inflation eases, they may choose to lower rates. Lower rates can spur investments, leading to higher stock prices, as investors look for better returns on their investments. Conversely, if inflation begins to rise again, the central banks may need to increase rates, which can lead to lower stock prices.
In conclusion, inflation easing is a positive development for the economy. It signifies much-needed stability, promoting economic growth, and enabling businesses to plan for the future. As we watch the inflation rate fluctuate in the coming months, it will be interesting to see how the markets react to this easing.
Stocks-ology
…"Inflation" one of the psychopaths favorite words…
Overpaid nitwits. Government printing money and pouring oceans of it out there and then trying to contain the damage with interest rate nibbling is – p*ssing in the wind.
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Electric cars will never be mass produced. There simply aren't enough resources to make so many batteries. It will only be available as a low high priced production vehicle. It's a scam.
Baby boomers are retiring or on the verge to, so honestly though, how do we deal with such market conditions, typically my holdings go up 8% then lose 20% right after and it’s just keeps going down, I’m confused and truly sick of the system.
This Fiat "bogus" currency, will dwindle further.
Printing money out of thin air.
How can I prevent this from playing automatically in my queued videos.doesnt have the Don't recommend option
4:34 Lisa’s hand movements to drive home her talking points are always so expressive
oh, Commercial Banks operating with ZERO % REQUIRED RESERVES creating as much credit as they can without limitation? — and u are surprised? u are a F'ing idiot or a Liar
Inflation isn’t going away. The core inflation problem is due to boomers retiring and there being no replacement for the demand in labor they are leaving behind.
We need to 4x immigration to get inflation tamed long term. That and build houses.
as I said before, Powell has to pay homage to Volcker and do a …well, a Volcker
Ms. Hordern,
Very nice Campbell Tartan.
Sincerely,
R.W.N II
The decay half-life of the price of one Bitcoin is now 11 months with a standard deviation of 2.44
Dean Common Cents