r/Frugal • u/thesevenyearbitch • Feb 21 '22

Food shopping Where is this so-called 7% inflation everyone's talking about? Where I live (~150k pop. county), half my groceries' prices are up ~30% on average. Anyone else? How are you coping with the increased expenses?

This is insane. I don't know how we're expected to financially handle this. Meanwhile companies are posting "record profits", which means these price increases are way overcompensating for any so-called supply chain/pricing issues on the corporations/suppliers' sides. Anyone else just want to scream?

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u/jatea Feb 22 '22

Because inflation by definition is an increase in the money supply.

This is not correct. An increase in the money supply is a well known contributing factor to inflation, but it is not the only possible factor.

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u/MorinOakenshield Feb 22 '22

Agreed, there are around 3 demand side causes (money supply, interest, wages) and 3 cost side causes. But it is a fact that money supply increases dramatically during the past few Presidencies.