politics

I don’t see how inflation picks up with this much demand driven deflation.

It’s counterintuitive but there is a term for it (stagflation) and we’re beginning to see it take hold.

Stagflation assumes GDP is stagnant and inflation is rampant. If deflation sets in neither will be true. It’s the unexpected card but it’s something I’ve been seeing in the economy since 2022

Right. I know that tariffs are generally deflationary because they reduce demand. However, for whatever reason, inflation is still ticking up right now and GDP has gone negative. Whether that continues is the question. 

Could the money supply have an outside impact?

Possibly could be money supply but I just think consumers were teetering anyhow. I mean 25% of Americans buy groceries with buy now pay later. 

Adding tariff demand driven deflation and it could negate any money supply inflation.