Hacker News new | ask | show | jobs
by hirako2000 1767 days ago
Supply and demand change is what increases or decreases costs. If demand don't adapt, there will be inflation to force it to adapt :)
1 comments

'Inflation' is not the price increase of a single thing to demand/supply.

Inflation is the systemic increase in all costs of what a household would buy as money itself become less valuable.

Prices 'inflating' on a single product because there's a shortage of... base materials or whatever is not inflation as an economic term.

You are quite right. Except that you are implying other product will decrease in price while that one increases. Vehicles is a rather large market and an element of supply chain costs, chips are used across so many industries. I would rather expect the majority of product to see an increase in price. We can talk technical terms but my comment was a reflection of the markets at large.