Higher prices such as in food and energy come and go. But real inflation can only increase if it is derived from higher wages since wages typically only go higher and not lower. That is what makes inflation sustainable. However, because of automation, globalization and efficiencies within businesses, it is deflation that will be the problem and not inflation. Even when the unemployment rate was at 3.5% in 2019, inflation did not go above 2.3%.
How does inflation affect your way of trading?
Talk soon,
Al Losada
Founder | SimpleOptionStrategies.com
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