It seems to me that monetary inflation (i.e., expansion of the money supply) cannot cause prices to increase if people refuse to pay higher prices. Example: it seems to me that food prices currently are skyrocketing, whereas clothing prices currently are falling. People have to eat, but they don't have to wear new clothing. Therefore, as long as people aren't raising their own food, they have to pay higher food prices, but clothing stores are forced to lower clothing prices through permasales in order to get customers.
With monetary inflation, I would expect to prices rise on perceived necessities, but not so much on perceived luxury items, except for extreme luxuries, which billionaires might buy in any economy. And I would expect to see the universe of perceived necessities to shrink while the universe of perceived luxuries grows. Am I right about this?
If everyone's food cost has risen by $300 per year because of supply disruptions, that is $300 less that they possess to help bid up prices of other goods.
So prices of other goods should in fact be going down as a result. But that is if the stock of money in circulation remained steady.
The reality is that prices of everything (goods and labor) has risen steadily since 1913, coinciding with the Federal Reserve Act. The US dollars purchasing power has been eroded by the central bank's persistent over issuance of money. Prices for all goods and services isn't rising, it is the purchasing power of money that is eroding taking more units of our currency to buy goods and services.
You can look at inflation rates for different periods by going to http://www.bls.gov/data/inflation
Biflation is inflation and deflation occurring simultaneously in different assets. Inflation is being fueled by global central banks expansionary money policies. More money chasing assets with finite supply means the price will be bid up and hence inflation.
Divining for the true value of Gold and Silver
Rowe 2016 Seminar Alumni
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Living in the city during peak housing prices